EC120 Chapter Notes - Chapter 20: Single Parent, Economic Mobility, Maple Syrup
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EC120 Full Course Notes
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Ec120 chapter 20: income inequality and poverty (pg. Someone"s earnings depend on supply and demand for that person"s labour depends on natural ability, human capital, compensating differentials, discrimination, etc. Labour earnings = of total income in canadian economy = factors that determine wage also determines how economy"s total income is distributed among members. ^ line up all the families in the economy according to annual family income and divide them into five equal groups. In 2007, bottom fifth of all families received 2% of all after-tax income, and top fifth received. Even though both groups have same number of families, top fifth has about 8 times as much income as bottom fifth. Various gov. policies designed to redistribute income: income tax, transfer programs (not taken account in table 20. 1) Column 2 shows avg. amount of gov. monetary transfers received by each group total family income increases to . Exception of poorest, transfer payments tend to fall with increasing family income.
