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Assignment 3

Assignment 3

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Q. 1 INEQUALITY

Country chosen: Brazil

(i) ASSESSMENT OF NATURE & LEVEL OF INEQUALITY IN BRAZIL

In order to assess the nature and level of inequality in Brazil, the following two

measures of inequality are chosen:

➢ GINI Index

➢ Income share held by highest 10%

Countries chosen for comparison (having similar per capita GNI (PPP), 2015:-

• Brazil GNI Per capita (PPP) = $15140

• Mexico $16860

• Costa Rica $ 14910

ASSESSMENT OF GINI INDEX

The Gini coefficient (sometimes expressed as a Gini ratio or Gini index) is a measure

of statistical dispersion intended to represent the income or wealth distribution of a

nation's residents, and is the most commonly used measure of inequality. It is often

used as a gauge of economic inequality, measuring income distribution or, less

commonly, wealth distribution among a population. The coefficient ranges from 0 (or

0%) to 100%, with 0 representing perfect equality and 100 representing perfect

inequality

As can be clearly seen from the data, Brazil has the highest Gini coefficient amongst

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the three countries with a value of 51.5%. Mexico has the lowest, 48.2%. It represents

a higher level of inequality in Brazil.

ASSESSMENT OF INCOME SHARE HELD BY HIGHEST 10 %

Percentage share of income or consumption is the share that accrues to subgroups of

population indicated by deciles or quintiles.

As is evident from the data, greatest percentage of income is held by the highest 10%

in case of Brazil. This is followed by Mexico and Costa Rica has the lowest income

share held by the highest 10% population. This shows that Brazil has the highest

inequality amongst these countries.

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Q. 1 INEQUALITY Country chosen: Brazil (i) ASSESSMENT OF NATURE & LEVEL OF INEQUALITY IN BRAZIL In order to assess the nature and level of inequality in Brazil, the following two measures of inequality are chosen: ➢ GINI Index ➢ Income share held by highest 10% Countries chosen for comparison (having similar per capita GNI (PPP), 2015:• Brazil GNI Per capita (PPP) = $15140 • Mexico $16860 • Costa Rica $ 14910 ASSESSMENT OF GINI INDEX The Gini coefficient (sometimes expressed as a Gini ratio or Gini index) is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, and is the most commonly used measure of inequality. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. The coefficient ranges from 0 (or 0%) to 100%, with 0 representing perfect equality and 100 representing perfect inequality As can be clearly seen from the data, Brazil has the highest Gini coefficient amongst the three countries with a value of 51.5%. Mexico has the lowest, 48.2%. It represents a higher level of inequality in Brazil. ASSESSMENT OF INCOME SHARE HELD BY HIGHEST 10 % Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. As is evident from the data, greatest percentage of income is held by the highest 10% in case of Brazil. This is followed by Mexico and Cos ...
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