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20 Income Inequality and Poverty McGraw­Hill/Irwin Copyright © 2012 by The McGraw­Hill Companies, Inc. All rights reserved. . Facts About Income Inequality • Average household income •$66,424 in 2008 •Among the highest in the world • Distribution by quintiles • Income mobility •People change quintiles • Government redistribution •Taxes and transfers LO1 20-2 Facts About Income Inequality Distribution by Quintiles, 2008 (1) Quintile Lowest 20% Second 20% Third 20% Fourth 20% Highest 20% Total (2) Percentage of Total Income 3.4 8.6 14.5 22.9 50.5 100.0 (3) Upper Income Limit $20,712 39,000 62,725 100,240 No Limit Source: Bureau of the Census, http://www.census.gov LO1 20-3 Facts About Income Inequality Lorenz Curve and Gini Ratio 100 e Lorenz Curve 80 (Actual Distribution) Perfect Equality 60 A 40 d B 20 b c Complete Inequality a 0 20 40 60 80 100 Percentage of Households Gini Ratio = Area A Area A + Area B LO1 20-4 Facts About Income Inequality Impact of government taxes and transfers 100 80 60 Lorenz Curve After Taxes and Transfers 40 20 Lorenz Curve Before Taxes and Transfers 0 20 40 60 80 100 Percentage of Households LO1 20-5 ... - tailieumienphi.vn