What are the difficulties in estimation income inequality at the

What are the difficulties in estimation income inequality at the

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What are the difficulties in estimation income inequality at the global level? -Developing countries for example India and china are growing faster than developed countries and the poor counters are falling behind. -Income poverty is merely one aspect of deprivation. public goods and services are not account for (e.g. sewer services, access to basic health care). -Limited data and inconsistencies of country to country by comparison What are the different ways of measuring global inequality? -International Poverty Line (IPL) calculated by converting the purchasing power (Purchasing Power Parity: adjustment based on how much it costs to buy the same basket of goods in two or more different countries) of an average of the official national poverty lines of a set of low- income countries into U.S. dollars. -From household surveys, the World Bank (International Comparison Program) then estimates the number of people in countries living on less than this figure. -“Money metric” approach: international poverty line defined in relation to money rather than an
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