Chapter
21
Income
Inequality,
Poverty
and
Discrimination
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Facts
About
Income
Inequality
Average
household
income
$69,821
in
2011
Among
the
highest
in
the
world
Distribution
by
quintiles
Income
mobility
People
change
quintiles
Government
redistribution
Taxes
and
transfers
LO1
21-2
f
Facts
About
Income
Inequality
Lorenz
100
curve
and
Gini
e
ratio
80
Lorenz Curve
(Actual Distribution)
Perfect Equality
60
40
A
d
B
20
b
c Complete
Inequality
0
a
20
40
60
80
100
Percentage of Households
LO1
Gini
Ratio
=
Area
Area A
A + Area
B
21-3
Percentage of Income