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Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

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Page 1: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley

Chapter 13

INCOME INEQUALITY

Page 2: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-2

Table 13.1 Household Income in the United States by Quintiles, 2006

Page 3: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-3

Figure 13.1 Income Distribution in the United States, 2006

Page 4: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-4

Figure 13.2 The Lorenz Curve for the United States, 2006

Page 5: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-5

Figure 13.3 The Kuznets Curve

Page 6: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-6

Figure 13.4 The Kuznets Curve in England and Wales, 1823–1915

Page 7: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-7

Figure 13.5 Income per Capita Versus Inequality

Page 8: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-8

Figure 13.6 Income per Capita Versus Income of the Bottom Quintile

Page 9: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-9

Figure 13.7a Determination of Income Inequality

Page 10: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-10

Figure 13.7b Determination of Income Inequality

Page 11: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-11

Figure 13.7c Determination of Income Inequality

Page 12: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-12

Figure 13.8a How the Return to Education Affects the Distribution of Income

Page 13: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-13

Figure 13.8b How the Return to Education Affects the Distribution of Income

Page 14: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-14

Figure 13.8c How the Return to Education Affects the Distribution of Income

Page 15: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-15

Figure 13.9a How the Distribution of Education Affects the Distribution of Income

Page 16: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-16

Figure 13.9b How the Distribution of Education Affects the Distribution of Income

Page 17: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-17

Figure 13.9c How the Distribution of Education Affects the Distribution of Income

Page 18: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-18

Figure 13.10 Income Inequality in the United States: 1947–2005

Page 19: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-19

Table 13.2 Saving Rates by Income Quintile, 2003

Page 20: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-20

Figure 13.11 Marginal Products of Physical and Human Capital

Page 21: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-21

Figure 13.12 Relationship Between Income Inequality and the Desired Tax Rate

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Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-22

Figure 13.13 How an Increase in Income Inequality Affects the Desired Tax Rate

Page 23: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-23

Figure 13.14 Relationship Between Income Inequality and Sociopolitical Instability

Page 24: Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 13 INCOME INEQUALITY

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13-24

Table 13.3 Intergenerational Income Mobility in Canada