Monday, March 17, 2014

Income Inequality

Here's a link to NBER data base. If you can find the source of the data that colloberates the assertion in the cartoon, please post in the comments.  I don't doubt that the assertion is true, however, I could not find the study.

The Gini Coefficient measures the extent of income inequality.  It is calculated by dividing the area between the line of perfect equality and the Lorenze curve by .5.  Wikipedia lists the Gini Coefficient as .45. This area would be approximately .225.  I just don't believe that this area is the same as it was in 1920.

1 comment:

  1. Hey, Mike,

    The best I can find is that this particular cartoon is riding off a comment made in an article from the author of the study.

    Found here:

    The article mentions that the researchers presented their findings sometime in late Feb. I do not know how long NBER takes to post papers but I could not find it either.

    Here is the link on the NBER site for the researcher mentioned in the article. His most recent paper (Jan 2014) is on inequality from long before the 1900's, so I am not sure if that is the referenced paper OR his particular comment in the article was not actually the subject of the recent paper BUT maybe the journalist interpreted it that way.