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Officials in Nerfenland are concerned about the current level of income inequality in their country, where the highest quintile of families currently earn 60% of

Officials in Nerfenland are concerned about the current level of income inequality in their country, where the highest quintile of families currently earn 60% of the country's income. The central government has income information on its citizenry, and they want you to help them interpret the data from a 10-year period.

The table below gives data on how families have moved between income quintiles between the years shown.

Fill in the missing values in the distribution table for families in Nerfenland; then use the information in the table to answer the following questions.

Income Distribution in 1995

Income Distribution in 2005

(Percent)

Highest Quintile

Second Quintile

Third Quintile

Fourth Quintile

Lowest Quintile

Highest Quintile 30 20 18 17 15
Second Quintile 22 30

11 15
Third Quintile

15 32 17 19
Fourth Quintile 16

20 15 21
Lowest Quintile 15 7 8

30

Looking at families in the lowest quintile of income in 1995 (bottom row), you can report that

of families in the lowest quintile moved into a higher quintile of income distribution by 2005.

Now look at the percentage of families in each quintile that remained in the same quintile between 1995 and 2005. In each quintile, a of families moved to a different quintile. This implies that Nerfenland has economic mobility.

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