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Unformatted text preview: Chapter 20 Who Gets What? The Distribution of I ncome • Share distribution of income is the relative division of total income among income groups • Socioeconomic distribution of income is the allocation of income among relevant socioeconomic groupings • Lorenz curve is a geometric representation of the share distribution of income among families in a given country at a given time o Measures the cumulative percentage of families on the horizontal axis, arranged from poorest to riches, and the cumulative percentage of family income on the vertical axis • Perfectly equal distribution of income would be represented by a diagonal line like the one in Figure 20-1 • Distribution of income over time is also affected by demographic and technological factors • From 1929 to 1970 income inequality in the US decreased. From 1970 to 2007, it increased. • Poverty threshold the income below which a family is considered to live in poverty • Not been recalculated to account for rising standards of living • Who favor a relative measure of poverty argue that our current poverty...
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This note was uploaded on 02/23/2011 for the course ECON 2010 taught by Professor Moonjung during the Spring '09 term at UVA.
- Spring '09