The Distribution of Income and Wealth - Chapter 9
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- Created on: 16-03-16 09:25
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- The Distribution of Income and Wealth
- Chapter 9
- Sources of wealth
- Inheritance
- Chance
- Saving
- Entrepreneurship
- Wealth inequality
- Chance
- Inheritance
- Marriage
- Income inequality
- Measuring the distribution of income
- Lorenz curve
- Diagrammatic illustration
- The larger the bend, the more the inequality
- Gini coefficient
- Statistical
- Perfect equality = 0
- Perfect inequality = 1
- The closer it is to 1, the more unequal the distribution of income
- Perfect inequality = 1
- Lorenz curve
- Causes of income inequlity between households
- Differences in earnings
- i.e. full-time and part-time
- Differing skills and qualifications
- Wealth inequality
- Dividends and interest from asset holdings
- Household composition
- i.e. no of people working
- Impact of the state
- i.e. benefits
- Differences in earnings
- Government intervention
- Taxation i.e. progressive
- Monetary benefits
- Means tested i.e. Working Families Tax Credit for those that can prove they earn under a certain income
- Universal i.e. Child benefits for all families with young children
- Direct provision of goods and services
- Legislation and labour market policy
- i.e. National minimum wage
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