ECN 101 Lecture Notes - Lecture 18: In Kind, Old Age Security, Gini Coefficient
11 Oct 2017
School
Department
Course
Professor
Document Summary
If everyone has equal income then lose incentive to work. Government transfers: gov payment to individual or families, financial aid to, poor, unemployed, income for elderly, medical bills for ppl with expensive bills. Ability to pay principle: make more pay more, lover income pay smaller fraction, suggest that low income should get money back system. Mean household income: average income across all house holds. Median household income the income of a family at the center of the income distribution: better indicator of the income, not distorted by the inclusion of a small number of very wealthy households. Not means tested: universal child care benefit, pension plan, employment insurance. In kind benefit: benefit given in form of goods/ service, drug plans. Politicians left : favor a bigger welfare state right to oppose it. Rising min wage (example: department of distribution increase income of poor, allocation, give incentive to cut back their work force, effect both = conflict between equity and efficiency.
