Go to ...
RSS Feed

18. August 2019

How Not to Measure Inequality

According to the relative metric, if the income of the poor increases at a faster rate than the income of the rich, this is recruited as a decline in inequality even if the absolute income gap between the two continues to widen.

Take for example a poor country whose average income goes from $500 to $1,000 (a 100% increase), and a rich country whose income goes from $50,000 to $75,000 (a 50% increase). The poor country’s income has grown twice as fast as the rich country’s, relative to its starting point. According to the relative metric, this is a decline in inequality (and is represented as such in the Gini index, the elephant graph, and the log scale).

Source link

Premium WordPress Themes Download
Download WordPress Themes
Download Premium WordPress Themes Free
Premium WordPress Themes Download
free online course

Leave a Reply

Your email address will not be published. Required fields are marked *

More Stories From Allgemein