ECON 2304 Lecture Notes - Lecture 20: Income Distribution, Supplemental Security Income, Temporary Assistance For Needy Families
1 Dec 2016
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Introduction: equilibrium wages equal the value of workers" marginal products, differences in equilibrium wages result from differences in. Extent to which a job is pleasant and safe: disregarding discrimination. Income distribution in a market economy may not be equitable or otherwise desirable. Us income distribution in 2012: top fifth make 104k and over, bottom fifth make less than 20. 7k. Us inequality, 1950-2010: calculated by income share of top 20% divided by income share of bottom. Inequality around the world: highest in south africa, lowest in japan. Between 1982-1990, poverty decreased due to boom. In-kind transfers assistance that takes the form of g&s rather than cash. Omitted from measures of inequality and poverty: life cycle regular pattern of income variation over a person"s life. People can borrow and save to offset life-cycle changes in income. Ex: saving for retirement: transitory vs. People can borrow and save to smooth out transitory income fluctuations. Permanent income a person"s normal income.
