Economics 1021A/B Chapter Notes - Chapter 19: Information Technology, Old Age Security, Lorenz Curve

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Emilie Rivers

Document Summary

Lorenz curve: graphs cumulative % of income against cumulative % of households. Line of equality: shows that lorenz curve would be if everyone had same level of income 45o angle. Income lorenz curve: actual distribution of income: closer curve is to line of equality, the more equal income distribution is. Household"s wealth is value of things it owns at point in time more unequal than income. Education and training: education contributes directly to human capital, age/experience indirectly contributes, career interruptions can human capital. Trends in inequality explained by technology and education. If customers prejudice against women women suffer and men benefit. Counteracting forces: p discrepancy should be incentive to encourage people to buy from people whom they"re prejudiced against. Should be strong enough to eliminate effects of discrimination. Differences in degree of specialization. 3 ways gov"t redistributes income income taxes, income maintenance programs and subsidized services. 3 main types of programs that redistribute income social security, employment insurance and welfare.