Overview
The econometrics of inequality is a vital field that analyzes how economic data can reveal disparities in income and wealth distribution. By employing statistical methods, researchers can measure inequality, understand its causes, and evaluate the effectiveness of policies aimed at reducing it. This...
Key Terms
Example: A Gini coefficient of 0.25 indicates a relatively equal income distribution.
Example: The Lorenz curve can illustrate how far a society is from perfect equality.
Example: In the U.S., the poverty line is adjusted annually based on inflation.
Example: Regression analysis can help determine how education affects income levels.
Example: High social mobility indicates that people can improve their economic status.
Example: People living on less than $1.90 a day are considered to be in absolute poverty.