SOC 101 Study Guide - Midterm Guide: Gini Coefficient, Income Inequality Metrics, Statistical Dispersion
14 Dec 2019
School
Department
Course
Professor
Document Summary
Stratification, class and inequality (tb chapter and resource) Indexes to measure inequality: difference between the gini index and the palma ratio. Palma ratio: measures inequality across the whole of society rather than simply comparing different income groups, a measure of statistical dispersion intended to represent the income distribution of a nation"s residents. If all the income went to a single person (maximum inequality) and everyone else got nothing, the gini coefficient would be equal to 1. If income was shared equally, and everyone got exactly the same, the ratio of the income share of the top. In more equal societies this ratio will be one or below, meaning that the top. 10% does not receive a larger share of national income than the bottom 40%. In very unequal societies, the ratio may be as large as 7: addresses the gini index"s over- sensitivity to changes in the middle of the distribution and insensitivity to changes at the top and bottom.
