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Lec_19_inequality

Lec_19_inequality - Second exam over Chapters 10-12 on...

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1 Second exam over Chapters 10-12 on Wednesday Nov 16 Discussion section will not meet on Wednesday Exams returned beginning discussion section on Friday Nov 18 Chapter 13: Labor Markets, Poverty, and Income Distribution D. Determinants of wages E. Labor market imperfections F. Discrimination G. Measuring inequality Lorenz curve plots cumulative percentage of income (vertical axis) as function of cumulative percentage of households (horizontal) 3.4% 8.6% 14.6% 23.0% 50.4% Gini coefficient (also called Gini ratio )shows area between Lorenz Curve and 45% line as a fraction of the area under the 45 degree line Gini = 0 means perfect equality, Gini = 1 means perfect inequality Gini coefficients in different countries
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2 Top 20% of households earn 50% of income. Bottom 20% of households earn less than 4% of income. Top 20% of households by earnings include 25% of the population. Bottom 20% of households by earnings include 14% of the population. Top 20% of households by earnings performed 34% of hours worked. Bottom 20% of households by earnings performed 4% of hours worked. Top 20% of households earn 50% of income.
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