In this paper, you are asked 5 questions. In question 1, you are to make comments on figure 1 and 2 and discuss reasons for the rise in top income shares in advanced countries especially the USA. In following question, you are to interpret figure 1 which is the Gatsby Curve and figure 4. State the reason why is upward social mobility higher in Canada and Sweden. Furthermore, examine the top 10% income shares for Canada and Sweden and give comments. In next question, related to article “Changing income inequality in Canada” answer how the author decomposes earning shares for three groups of workers by gender. And derivate equation 2 from 1, also highlight two points from table 8. Finally, the last question is related to the World inequality report 2018 you are to discuss one major weakness of the Gini index and also of the measures of the inequality based on the households surveys data. And highlight points from figures.
Economics
Assignment # 4
1. Read the article on top income shares ( available on D2L) and answer the following questions:
a) Make comments on Figure 1 and figure 2.
b) Briefly discuss at least four reasons for the rise in top income shares in advanced countries, especially the USA.
2. Read the article on income inequality and intergenerational mobility ( available on D2L) and answer the following questions.
a) Interpret Figure 1 ( the Gatsby Curve) and Figure 4.
b) Why is upward social mobility higher in Canada and Nordic Countries compared to the United States?
3. Examine the top 10% income shares for Canada and Sweden and make comments. Collect the data from:
www.wid.world
4. Read the article on “ Changing Income Inequality in Canada..” available on D2L and answer the following questions.
a) How does the author decompose earning shares for three groups of workers ( Low-income, Middle income, and High Income) by gender? Derive equation 2 from equation 1 by rearranging, taking logs, and time derivatives. ( Read pages 1255 and 1256).
b) Highlight two points from Table 8.
5. Read the relevant sections of the World Inequality Report, 2018 ( available on D2L) and answer the following questions:
a) Briefly discuss one major weakness of the Gini index as a measure of income inequality ( Read page 27). Mention also one weakness of the measure of inequality based on household surveys data (Page 29).
b) Highlight two points from each of the following figures: Figure 2.1.1 (page 45) and Figure 2.3.2a ( Page 70)
