Economic Well-Being
ECONOMIC INEQUALITY “As long as poverty, injustice and gross inequality persist in our world, none of us can truly rest.”: Nelson Mandela Economic inequality is the unequal distribution of income and opportunity between different groups in society. For instance, the 20:20 ratio compares how much richer the top 20% of people are, compared to the bottom 20%. Common examples: 50/10 ratio – describes inequality between the middle and the bottom of the income distribution. 90/10 – describes inequality between the top and the bottom. The most commonly used inequality measures are the Gini coefficient (based on the Lorenz curve) and the percentile or share ratios. These measures try to capture the overall dispersion of income; however, they tend to place different levels of importance on the bottom, middle and top end of the distribution. Education, at all levels, enhancing skills, and training policies can be used alongside social assistance programs to help people out of poverty and to...