Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following table shows the income shares by quintile for Canada in 2011 for different income measures (this table was taken from the textbook, pg.
The following table shows the income shares by quintile for Canada in 2011 for different income measures (this table was taken from the textbook, pg. 119). Income Quintile Market Income Total Income After-Tax Income (before taxes and (before taxes and after (After Transfers) transfers) transfers) Lowest Quintile 1.0 4.1 4.8 Second Quintile 7.2 9.6 10.6 Third Quintile 14.6 15.3 16.3 Fourth Quintile 24.9 23.8 24.1 Highest Quintile 52.3 47.2 44.3 Source: Statistics Canada CANISM II database http://canism2.statcan.ca/ Table 202-0701 Note: Transfers, for example, social assistance, El benefits, or child benefits. Also that the income shares of the highest quintile might go down after transfers not because they have received negative payments but rather others received more transfers and their income increased more relative to the highest earners. a) Draw the Lorenz curves for the different measures b) Do transfers or taxes contribute more to the reduction of income inequality in Canada
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started