Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Positive assortative matching. (25 marks) Let us define high income in this society as an income of R20, 000.00 and more. Suppose that high income

Positive assortative matching. (25 marks) Let us define high income in this society as an income of R20, 000.00 and more. Suppose that high income earners of opposite genders are matched to (married to) other high-income earners, and the rest of the population are randomly matched. a. What matching among high income earners results in the highest Gini coefficient? You may express your matches in pairs, for example, (1, 2) mean that a person with ID 1 is matched with a person with ID 2. Your final answer will be a list of matchings. b. What matching among high income earners results in the lowest Gini coefficient? c. What is the Gini coefficient when people are randomly matched? d. Comment briefly on how positive assortative matching affect income inequality

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Control And Audit

Authors: Angel R. Otero

5th Edition

1498752284, 9781498752282

Students also viewed these Economics questions

Question

=+a) Create a run chart for the baseballs circumferences.

Answered: 1 week ago