ECON 104 Chapter Notes - Chapter 10: Canada Revenue Agency, Human Capital, Extreme Poverty
7 Apr 2016
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Document Summary
People have different position in distribution of what matters. Income inequality: about distribution of all monetary (and some non-monetary) receivables: usually over a year, estimate often done on individual basis but also often household/ family basis. Pay inequality: distribution of wage: illustrates that pay inequality is difficult to assess because not one dimension, estimates usually done on individual basis. Wealth inequality: distribution of wealth: wealth: may be defined as present value of the future income plus net assets you own, think about wealth as that it measures how much you can consume. Having nothing now but expect a lot next year, then you"re wealthy (borrow against your future: estimate often done on individual basis but also often household/ family basis (looks at income of family rather than individual) Other inequalities: good looks, health, intelligence, etc . Example: wealth inequality is hard to measure where as income inequality is easier as government collects data income anyway primarily for taxing.
