Measuring%2520Income%2520Distribution_the%2520Lorenz%2520Curve_rev

Measuring%2520Income%2520Distribution_the%2520Lorenz%2520Curve_rev

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Measuring Income Distribution
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Lorenz Curve A B Cumulative % of income Cumulative % of households 100 100
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MEASURING INCOME DISTRIBUTION Cumulative Distributions Households and income Lorenze Curve Gini Coefficient g = A/ (A+B) if g = 1; perfect inequality if g = 0; perfect equality the lower the coeff., the more equal the distribution of income
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Income Inequality in the USA Year Bottom 1/5 Second 1/5 Middle 1/5 Fourth 1/5 Top 1/5 Top 5% 1999 4.2% 9.7% 14.7% 21.3% 50.4% 1994 4.2 10 15.7 23.3 46.9 20.1 1990 4.6 10.8 16.6 23.8 44.3 17.4 1980 5.2 11.5 17.5 24.3 41.5 15.3 1970 5.5 12.2 17.6 23.8 40.9 15.6 1960 4.8 12.2 17.8 24 41.3 15.9 1950 4.5 12.0 17.4 23.4 42.7 17.3 1935 4.1 9.2 14.1 20.9 51.7 26.5 Source: Mary Bumgarner
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Income Distribution Compared Bottom 1/5 Second 1/5 Middle 1/5 Fourth 1/5 Top 1/5 1994:Germany 8.2% 13.2% 17.5% 22.7% 38.5% 1992:China 6.2% 10.5% 15.8% 23.6% 43.9% 1998:China 5.9% 10.2% 15.1% 22.2% 46.6% 1999:USA 4.2% 9.7% 14.7% 21.3% 50.4% 1995:Brazil 2.5% 5.7% 9.9% 17.7% 64.2% Source: World Bank & Mankiw (2001), p.441
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Brazil 60 U.S. 40.8 S. Africa 59.3 India 37.8 Chile 56.5 Poland 32.9 Mexico 53.7 S. Korea 31.6 Nigeria 50.6 Sweden 25 Philli- pines 46.2 Slovak Republic 19.5 Source:
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This note was uploaded on 11/10/2011 for the course ECON 4310 taught by Professor Staff during the Fall '08 term at Kennesaw.

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Measuring%2520Income%2520Distribution_the%2520Lorenz%2520Curve_rev

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