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
    • 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
    • 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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