LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 7P
To determine
The countries with the most equal and the most unequal income distribution.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The data in the table characterizes the income distribution for a country.
What percentage of the total population is categorized as belonging to the second quintile? Give your responses as whole numbers.
Income category
Share of income (%)
Cumulative share of income (%)
first quintile
7.0
---
second quintile
9.0
16.0
third quintile
---
35.0
fourth quintile
25.0
---
fifth quintile
40.0
---
percentage of population in second quintile:
%
What percentage of the total income for the country is earned by the third quintile?
percentage earned by the third quintile:
%
What is the cumulative share of income earned by the poorest 80% of the population?
percentage earned by the poorest 80%:
%
The table below shows information about the distribution of income in two countries. The rows are labeled "deciles" which are like
percentiles but for groups of 10% instead of 1% of the population. The 1St decile is the poorest 10%, for example, while the
10th decile is the richest 10%.
Coruscant
Naboo
cumulative income
cumulative income
decile
income share
share
income share share
1st
2.29%
2.29%
3.12%
3.12%
2nd
3.93%
6.22%
4.50%
7.62%
3rd
5.30%
11.52%
5.69%
13.31%
4th
6.56%
18.08%
6.80%
20.11%
5th
7.81%
25.89%
7.91%
28.02%
6th
9.14%
35.04%
9.11%
37.13%
7th
10.69%
45.73%
10.52%
47.65%
8th
12.71%
58.44%
12.37%
60.02%
9th
15.94%
15.32%
10th
25.61%
24.66%
mean income = 50,000
35,000
What is the cumulative income share for the bottom 9 deciles in Naboo?
Briefly describe any four census-related deficiencies as sources of geographical data.
Knowledge Booster
Similar questions
- How is absolute poverty measured, in comparison to the distribution of national income? Write down a statistic for each measurement. List 3 countries in Latin America with extremely high rates of absolute poverty and 3 countries with very high income inequality. What are 2 factors which may have increased absolute poverty rates throughout the region’s history? Finally, provide 2 factors which have increased income inequality in Latin America throughout its history.arrow_forwardInstructions: Use the interactive tool to plot Lorenz curves for the information in the table. Quintile 1st % of Income, United States, 5 2010 % of Income, Bangladesh, 2010 9 2nd 10 13 3rd 14 16 United States data from Census.gov, before-tax income, rounded to 1/100ths. Data for Bangladesh from WorldBank.org, rounded to 1/100ths. 4th 20 21 5th 51 41 Report your answers to two decimal places. According to these data, the Gini coefficient for the United States in 2010 is The Gini coefficient for Bangladesh in 2010 is These data indicate that in 2010, income inequality is (Click to select) in the United States compared to Bangladesh.arrow_forwardQ2] Given is the data for Country A and B: Population Fraction Country A's Income Country B's Income bottom 25% 5 million 10 million 2nd 25% 10 million 15 million 3rd 25% 30 million 20 million top 25% 55 million 55 million a) Compute the cumulative income share and neatly plot (using Excel) the Lorenz curve for these two countries with labels. Feel free to use excel template that I have uploaded and copy paste the plot. b) Compute the Gini coefficient assuming the region beneath the two respective Lorenz curve is For country A = 0.2875 For country B = 0.3250arrow_forward
- If a teacher is teaching his/her child at home will this be counted while estimating national income of a nation?arrow_forwardQ.1 In the table below, you are given data on income distribution within the UK for the year 2012-2013. Population clumped together based income ($) Percentage share of total income ($) Percentage share of disposable income (after taxes and transfers) ($) Bottom most quintile Second quintile Middle quintile Fourth quintile 3 9. 8 14 15 17 25 22 Top most quintile 49 38 a) Using the information given in the table above and choosing the appropriate diagram, you are required to plot two Lorenz curves that will show the distribution of income before and after intervention by the government in the form of taxes and benefits. Label them as LC1 and LC2 respectively.arrow_forwardQ.1 In the table below, you are given data on income distribution within the UK for the year 2012-2013. Population clumped together based income ($) Percentage share of total income ($) Percentage share of disposable income (after taxes and transfers) ($) Bottom most quintile Second quintile Middle quintile Fourth quintile 3 9. 8 14 15 17 25 22 Top most quintile 49 38 a) Using the information given in the table above and choosing the appropriate diagram, you are required to plot two Lorenz curves that will show the distribution of income before and after intervention by the government in the form of taxes and benefits. Label them as LC1 and LC2 respectively. b) Now calculate the Gini coefficients for both cases and comment on the nature of intervention (or type of tax system) by the government.arrow_forward
- The table below presents the percentage of total income that goes to a certain fraction of the population of the country of Sanaton. For example, according to the table, the bottom 40% of the population owns 25% of the total income generated in Sanaton. What is the income share of the third quintile? Cumulative percentage of population 20 40 60 80 100 Cumulative percentage of income owned 15 25 40 60 100arrow_forwardDetermine Life Expectancy Index, Education Index and Income Index for Country Yarrow_forwardQuestion 12 The following income distribution data are for Lesotho: Quintile Lowest 10% Lowest 20% Second quintile Third quintile Fourth quintile Highest 20% Percent Share 2.2% 3.0% 7.2% 12.5% 21.0% 56.3% Explain how to find the Gini coefficient, graphically. (Hint: You might want to use labels on your graph). You should be able to draw a graph on your computer, save it as a graph, picture, or document, and upload that graph, picture, or document to your answer box. If you cannot do that, you can always draw a graph on paper, take a picture, and upload the picture to your answer box.arrow_forward
- The following table shows income distribution data for 2015 and 2020 from the World Bank in Colombia and Dominican Republic respectively Quintile Colombia Colombia Dominican Republic Dominican Republic 2015 2020 2015 2020 Lowest 20% 3.8 2.8 5 6.2 Second 20% 7.9 7.4 9.3 10.7 Third 20% 12.5 11.9 13.8 14.9 Fourth 20% 20 19.6 20.9 21.7 Highest 20% 55.8 58.3 51 46.5 1. Consider a 12-person economy where the individuals are employed equally across thesectors. If the modern urban wage = £8, the informal urban wage = £3, and the traditionrural income = £1, what is the squared poverty gap index (P2) given that the poverty line= £1.25? Suppose that rural income now rises to £2, other things being equal, how wouldyou characterise and show this type of growth?arrow_forwardWhat is the approximate Gini coefficient associated with the following income distribution? Household Percentile 0.23 0.08 0.68 0.48 0.13 20th 40th 60th 80th 100th Share of Income 0.05 0.10 0.20 0.25 0.40 Cumulative Share of Income 0.05 0.15 0.35 0.60 1.00arrow_forwardUsing the following data, you calculated National Income in an early question. Wages and Salaries Employers' contributions to Social Security and employee benefit plans Monetary value of fringe benefits Income earned by self-employed individuals Income earned by unincorporated businesses Stockholder dividends Retained earnings $150,000 $75,000 $37,000 $216,000 $104,000 $46,500 $36,500 $15,000 $20,000 $1,940 $1,005 Income from the use of a house Income from the use an office space Interest received by households Interest paid by households Using that national income, use the following data to calculate GDP. Use the following format $100,000 Income earned from the rest of the world $200,000 $125,000 $2,000 $10,000 $500 Income earned by the rest of the world Indirect business taxes Capital consumption allowance Statistical discrepancyarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
