Unformatted text preview: .. equal, perfect distribution. Obviously, doesn’t exist, only a reference point. Lorenz curve measures actual distribution of income in a society. The more unequal the move beveled, bending down to the right. To the left is becoming more equal. GINI - ratio of the area between the perfect equality line and the lorenz curve. Take that area and divide what’s below. The lower the co-eff. the more equal the incom. dist. is and vice versa Quintile = 20% - lowest 20% today % of total income about 3.8 Highest 20% at about 50.2% of total income Reasons for income disparity: No. of workers(in a house hold), experience, education...
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- Fall '08
- perfect income equality, total income Reasons