To what extent is income inequality explained by income differences across different individuals (cross section difference)? To what extent is income inequality explained by income differences over the work career of a given individual (time series difference)? Why is it important to consider both of these factors when evaluating income inequality?

The data in the table below shows the income of some random people in Massachusetts. If these were the only people in Massachusetts what is the average (absolute) difference in income among all the pairs? nаme Pre-tax income Mayor Wu $20 Tom Brady $120 Matt Damon $60 QUESTION 12 (continued) What is the Gini coefficient for Massachusetts?

Now suppose that there is mobility in the labour market in country Alpha and we are in the pre-minimum wage period. Country Alpha receives migrants from country Beta and these migrants are positively selected. If we believe in the Roy model, do you expect country Alpha or country Beta to have a higher income inequality?

A group of 10 people have the following annual incomes: $24,000, $18,000, $50,000, $100,000, $12,000, $36,000, $80,000, $10,000, $24,000, $16,000. Calculate the share of total income that each quintile receives from this income distribution. Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution?

A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Calculate the share of total income each quintile of this income distribution received. Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2005?

Economists experience difficulties in accurately measuring income inequality because of which of the following? Choose one or more: A. The Gini index calculation discriminates against the poor in developed economies. B. Government programs are inefficient and difficult to monitor. C. large, underground economies that lack the reporting of income to the government D. Measurements tend to use "before tax" income, not "after tax" income (disposable income), which is the income people actually have available to purchase goods and services. E. The population size of an economy impacts the distribution of data, causing large economies to show more inequality than smaller economies. F. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market G. in-kind transfers where goods and services are given as aid to the poor instead of cash

Why is income inequality in America so pronounced? Consider education Outsourcing, immigration, and the gains of the super-rich are the most common reasons for the income inequality in America. Tyler Cowen disagrees: The problem is largely the lack of education. To date, outsourcing is not yet common enough to have much effect. Immigration doesn't account for much of the change in the wages paid to unskilled workers since 1950. Advances in technology raises the incomes of highly skilled workers. Inequality will be reduced if more people undertake education. Source: The New York Times, May 17, 2007 Immigrants to the United States include unskilled workers from Mexico and skilled workers from countries such as India and China. How would each of these types of immigrants influence the personal distribution of income? Unskilled immigrant workers and skilled immigrant workers O A. increase the percentage of total income earned by the poorest 20 percent; decrease the percentage of total…

Question 9 In Country X there are only two income levels: $10,000 and $40,000. Twenty million individuals earn the low income and twenty million earn the high income. The Gini coefficient associated with this income distribution is given by 0.70 0.30 0.35 0.65

Why is an increase in income alone not sufficient in improving health and education objectives?

How do these trends differ from wealth and income distribution during the previous 70 years and why have they changed?