Income Inequality Definition Quizlet

Income distribution looks at how much different socioeconomic groups in a country region or the world earn.

Income inequality definition quizlet. Is the sum over all the classes of absolute value of the difference between the percentage of total families in an income class minus the percentage of total income received by that class divided by two. Income inequality refers to the extent to which income is distributed in an uneven manner among a population. Start studying chapter 23. The united states currently holds 41 6 percent of the world s personal wealth making it the richest nation in the world but has a gini coefficient 42 that is the worst of any oecd.

Income inequality poverty and discrimination. World bank definition gini coefficient measure of income inequality where zero represents complete equality and 1 represents complete inequality. It also ranges from zero and one with higher values indicating greater inequality. Income disparities are so pronounced that america s top 10 percent now average more than nine times as much income as the bottom 90 percent according to data analyzed by uc berkeley economist emmanuel saez.

Extreme poverty percentage of a country s population living on less than 1 90 a day adjusted for purchasing power parity. To define income inequality we need to know what the income distribution is. The less equal the distribution the higher income inequality is. Learn vocabulary terms and more with flashcards games and other study tools.

Income inequality is how unevenly income is distributed throughout a population. The united states wealth inequality which takes into consideration income property and investments is even more pronounced than its income inequality.