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Income disparity may be measured in a variety of ways. The Gini index, which evaluates a population's income distribution, is the most often used metric.
Income disparity may be measured in a variety of ways. The Gini index, which evaluates a population's income distribution, is the most often used metric. The Gini index may be computed using family income and spending data. The Lorenz curve and the Theil index are two more measurements of income disparity. Data on household income and spending are required to construct the Gini index. This information may be obtained via surveys or administrative data. You will need statistics on the distribution of income among the population to compute the Lorenz curve. Data on household income, spending, and population may be used to create the Theil index. A variety of variables may contribute to income disparity. Economic factors such as growth, unemployment, and inflation are examples; social factors such as education and health are examples; and political factors such as taxation and government spending are examples. Income disparity cannot be reduced by a single program. A range of measures, such as those to decrease unemployment, expand access to education and health care, and reduce poverty, may be required. Income disparity is a complicated subject with several reasons. There is no one policy that is likely to be successful in decreasing income
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