ECO101H1 Chapter Notes - Chapter 18: Gini Coefficient, Social Insurance, Negative Income Tax
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ECO101H1 Full Course Notes
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Document Summary
Welfare state: collection of government programs that help alleviate economic hardship. Government transfer: government payment to individual or family. Social welfare program: provide payments based on need. Social insurance program: provide protection against unpredictable financial stress. Logic of welfare state: alleviate income inequality, alleviate economic insecurity, reduce poverty and provide access to healthcare. Poverty line/threshold: annual income below which a family is considered poor. Poverty rate: % of pop"n with incomes below the poverty threshold. Licos (low income cut-offs): families where they devote most income to necessities. Lim (low income measurements) are used for international comparisons. Lim = 50% median adjusted household income in which household size is taken into account. Absolute measure: the absolute minimum cost of living. Mbm: cost of a specific basket of goods to serve a family of 2 adults & 2 kids needs to survive. Gini coefficient: number that summarizes a country"s level of income inequality based on income distribution among quintiles.
