Questions tagged [inequality]

Differences in resource allocations or opportunities that arise within or between countries.

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2
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1answer
1k views

Gini index vs Herfindahl index: one increases while the other decreases

I am comparing two vectors of values which indicate portfolio weights in monetary units at two different dates. I wanted to quantify if the concentration in the portfolios changed. So I moved on with ...
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2answers
85 views

if the richest 85 people give away all their money?

I once heard a fact that the richest 85 people are as wealthy as half the world's population put together. My question is, what does that mean? Does it mean that there is some feasible method in ...
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1answer
191 views

What is the correct economic term for beneficial “transaction frequency”?

I am not an economist but I am trying to track down and understand an economic principal (and/or theory) that I think is called "transaction frequency" but when I go searching on that term I find only ...
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1answer
112 views

In a context of globalisation and high wage inequality, why should governments help unskilled workers?

With globalisation, wage inequality continues to be a strong issue for many developed nations. What I seek to find out here is, why should we even do anything to help the unskilled workers? From ...
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5answers
4k views

Calculating Gini Coeffecient

What's the fastest way (or formulae) of manually calculating Gini Coefficient of equal-sized bin income data? Example: No of individuals in group: 4 4 4 4 4 Income of each group: 1 2 3 4 5 ...
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2answers
176 views

Could the upper quintile pay the annual federal personal income tax for all other quintiles from their annual income?

I am wondering if, in theory, the upper quintile (20% of earners in the U.S.) could pay the annual federal tax bill for all quintiles from their annual income? I have been looking at 2013 CBO data ...
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4answers
366 views

How is money created?

This might seem like a really simple question, but I am really troubled by it on a macro scale. The money has to come from somewhere. Someone might start up a business that creates things or takes ...
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1answer
91 views

In what way specifically are US CEO's able to engage in rent-seeking and exploit corporate governance to increase compensation?

I've seen videos where Prof. Stiglitz mentions CEO compensation associated with rent-seeking: https://youtu.be/b7wIw1VNjSk?t=29m58s https://youtu.be/heOVJM2JZxI?t=41m28s I looked on the web and saw ...
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Is there proof that today more than 50% of the lowest income society lives worse than 50 years ago

The Economist on 12.11.2016 number (first number after getting US election results) wrote: "In real terms median male earnings are still lower than they were in the 1970s. In the past 50 years, ...
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Is it true that the eight richest men have more wealth than the bottom 50% of world population?

This statistic from Oxfam, an anti-poverty consortium, has been reported in prominent media outlets (example). Other articles dispute this statistic as misleading due to flimsy assumptions about debt (...
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2answers
993 views

Determining the Gini Coefficient in a 2 person economy [closed]

In a 2-person economy, the owner of a firm pays 20% of the total output to the worker. What is the Gini coefficient in this economy? The answer is supposed to be 3/5 but I end up getting 3/10 ...
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1answer
52 views

Effect on GINI of eliminating poverty in China

China eliminated extreme urban poverty this year and is on schedule to eliminate it in the rest of the country by the end of 2020. How do I calculate the approximate impact of this change for China'...
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Income Inequality as an indicator of wealth

My employer has assigned me the project of trying to understand where our current and potential International Private Banking clients are, and where they are moving to. To understand this, we are ...
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1answer
67 views

“Fairness” exists or not in the real world [closed]

What is "Fairness"? Does "Fairness" exist in the world? Thanks, Marx
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1answer
898 views

Are there data for the evolution of global economic inequality

Please excuse my ignorance of economics. I recently learned about the Gini-Coefficient as a measure of the economic inequality in a country. I have since seen several plots of this coefficient over ...
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Hypothetical question: Percentage change in Federal income tax revenue in United States if Gini Index = 0?

Gini index = 0 refers to an economy where gross income has been redistributed so that all income earners in the United States received the same income, equal to the most current measure of the mean (...
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6answers
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Reconciling low wages with high technology and high education

This is one example of many recent doom storied prognosticating that the "millennial" generation will be the first in (recent) history to experience lower incomes than their predecessors—at least in ...
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2answers
69 views

When a country collects data for calculating the Gini index, do they usually neglect single household?

OECD data for South Korea is based on the numbers provided by Statistics Korea, which does not count single household family income data in their statistics. I am just curious that neglecting single ...
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2answers
243 views

Who really benefits from economic growth?

In recent social protests, I have heard the claim that the economic growth benefits only the rich: they become richer while most people become poorer. To check whether this claim is realistic, I ...
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2answers
222 views

Is worsening wealth inequality intrinsic to Capitalism?

I am but a humble lay person, but I have a question. I've been thinking about wealth inequality and the structure of capitalism. It seems to me that the pay rate for workers accumulates in a linear ...
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2answers
153 views

Has income inequality ever been solved in societies in the past in terms of what people make to cost of living? [closed]

One thing I've seen many on here whether life style is increasing or poor's wealth is, income inequality in terms of things like food, water, healthcare keep going up, but wages aren't keeping up. ...
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Is the Occupy Wall Street famous 1% stable?

Occupy Wall Street has a famous slogan "we are the 99%", refering to the "fact" that 1% of the people in the US take nearly the quarter of the national income. However, this does not seem to consider ...
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5answers
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Why are real median household incomes stagnant?

This image shows US real median household income. It seems remarkable for its lack of growth over the last 20 years. This has been the subject of much political debate (around the "1%" and "occupy ...
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152 views

Is it likely as automation continues to make more jobs obselete, starvation and poverty levels will rise very badly? [duplicate]

I wanted to know facts, thoughts and such since this article (which was big news that trended this week) popped up: http://www.nbcnews.com/tech/tech-news/robot-may-take-your-job-next-few-years-n499556 ...
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3answers
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Is the development of “developing countries” evidence against the idea that former colonial powers owe their headway to exploitation?

There is a recurring narrative (especially but not exclusively in left-leaning circles) that today's "developed nations", particularly Western former colonial powers, owe much of their wealth and ...
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6answers
468 views

Have automation and technological advance been shown to have a positive impact on society and the economy or a negative one?

My friends and I, 2 of which are computer science majors think it is worse because is humans can't work and thus afford necessities, how will they survive? The definition of automation: the use of ...
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1answer
105 views

Two good sources (books preferably) that show the leading and most reasonable arguments for/against “trickle down economics”?

I was raised by fairly conservative parents and throughout my childhood have had the impression that Reagan was the standard candle to which all policy should be held to and in particular Reaganomics ...
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2answers
136 views

If America's economy collapsed what would happen to all of the citizens? What if the whole global economy collapsed? [closed]

My journalism professor is not an expert in finance or economics but has studied history. She is always giving us a negative lecture on the America's economy and how the rich are taking al of the ...
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3answers
70 views

Leveraging private capital

If an ultra high networth individual, like Bill Gates, Mark Zuckerberg, Carlos Slim, Paul Allen, Elizabeth of Windsor, Amancio Ortega, Liliane Bettencourt, Stefan Persson, Bernard Arnault etc. would ...
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2answers
107 views

Is the standard of living of poor & middle class people higher than in the past?

I really hope this is not opinion based. I am just looking for numbers, links, straightforward proof if possible that the lifetime we are in now, this decade, most of us are living better than in the ...
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103 views

Do rising inequalities create inflation?

When the "richs"* get richers, the "poors"* get poorer... assuming: h1) a constant volume of money, h2) a constant volume of people, h3) a close separation between the two groups of people, h4) a ...
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Is inequality increasing? Does it correspond to increasing social harm?

I have a series of related questions. My understanding is. Economic wealth (ie. GDP) per capita is increasing around the world. We can refer to this as 'the pie is getting bigger'. At the same ...
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2answers
657 views

Measure combining growth and distribution of income

A frequently used measure of economic progress is GDP growth. (There are alternative economic indicators as well, such as the Human Development Index.) But there are problems with GDP growth. For ...
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4answers
2k views

Has the world become poorer?

This question is not backed by serious economic research but mainly by a very simple attempt to look at how the world economy has changed. I am asking whether and why the world has, over the past 50 ...
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0answers
88 views

Calculating between-group inequality without microdata

I have data about a few (subnational) geographical units. For each of these units, I know: 1) the proportion of workers by level of education 2) the average income by level of education 3) the ...
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1answer
152 views

Differing Inflation Rates for Separate Income Groups; Literature?

So here's a few ideas that have been floating around my head since undergraduate university. It seems that money owned by the highest net wealth owners is always moving around and making a return, but ...
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1answer
141 views

What do we know about the causes of global income inequality?

According to the IMF, the GDP per capita in the USA is about \$57,000 per year. In many central African countries the figure is more like \$500 or less. These examples are indicative of the incredibly ...
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0answers
58 views

Post-redistribution Lorenz curve comparison with reranking in R

Using R, assume the population income for N= {1.. 7} looks like $X_1$= c(1,3,5,7,7,19,21). Use the Lc() function from the "ineq" package to plot the corresponding Lorenz curve $L_{X_1}(p_1)$. Next, ...
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2answers
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Are any of these tax dodging schemes actually realistic or exclusive to billionaires? [closed]

So there's been quite a bit of fuss over how the rich supposedly pay lower taxes (proportionally of course) than regular, hard-working Americans because of various tax schemes that "let the rich get ...
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3answers
350 views

Causes of income inequality in the US

I read an article in BusinessWeek that talked about income inequality in the US. The article attributed the difference to the Intel chip that came in 1971. Since that time big hi-tech companies have ...
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1answer
236 views

Can capital still be paid its marginal product in the absence of a homogeneous capital stock?

Thomas Piketty's best-selling book on inequality, "Capital in the Twenty-First Century" has attracted a lot of criticism on the right for its data analysis. Less well-known, however, is the criticism ...
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1answer
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Piketty's Return on Capital

How exactly does Piketty et al's method (as in his book) for computing the interest rate over time and countries work? I know that they use reported tax returns, and that some criticize them for also ...
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1answer
144 views

Is income inequality decreasing? [closed]

Mr. Yaron Brooks from the Ayn Rand Institute argues that global income inequality is decreasing. True/false?
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350 views

Does economic theory support the notion that the wealth of the wealthy is based on the poverty of the poor?

Almost any discussion about poverty and wealth and income inequality at some point includes arguments based on the premise that the wealth of the wealthy is causally related to the poverty of the poor;...
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Where can I find data on income and social mobility over time? How far back is data available?

I'm interested in income and social mobility. I understand that Piketty's research deals with the the distribution of income over a long time period. I have also seen some of Chetty and Saez's ...
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1answer
458 views

How do Gini coefficients correlate with the cost of higher education?

Are there any studies that explore the higher net present value (NPV) of education in countries with higher Gini coefficients? Additionally, do any of these studies include the impacts of economic ...

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