Czech Republic 's Problem Of Poverty

Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most people receive only a small share of the total. There are many advantages and disadvantages associated with the inequitable distribution of income.

Domestic inequality is most commonly measured using the Gini coefficient that varies between 1 and 0. A coefficient of 1 implies inequality is

Whether or not a country uses a relative or an absolute poverty measure undoubtedly influences the understandings of poverty of its citizens.

The issue of income inequality in the United States is complicated and does not have a definite answer. Income inequality can be measured in a few different ways. The first measurement for the income inequality in a country is to look at the percentages on households and group them into income categories, called distribution by income category. The second measurement for income inequality is called distribution by quintiles or fifths. This is when you divide the total number of people, households, families into five groups called quintiles to examine the percentage of total before tax income received by each quintile. Each quintile would then be ordered by income and households in the category.

First we must define what exactly income inequality really is and that is according to Definition of ‘Income Inequality’ (2015) said to be unequal income distributed to household or individual across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population. For example,

The 18% poverty level of 2008 is improved from the 33% level of the 1960’s, this decrease is attributable to an increase in educational attainment and income, resulting in lower levels of poverty.

Income and wealth inequality refers to the degree to which income is unevenly distributed among people in an economy. The share of total income received by different groups measures inequality, this visually represented in the Lorenz curve. The line of perfect equality bisects the graph with the percentage of income

Absolute poverty measurements are based upon a worldwide standard. They measure if a person is too able to earn enough money to satisfy the basic needs of individuals . This formation therefore looks at deprivation since it looks to see if you have enough to survive. Additionally this standard is a worldwide standard of what it expected to be needed by individuals to survive. Thus the absolute poverty measuring is a more fixed and world standard of measuring poverty. The Canadian version of this measurement is the MBM. It defines poverty as anyone who has a yearly income below the market basement, the amount that is defined as the minimum needed to have the access to the most basic necessities of life . The basement though will change as newer technological advances are deemed necessary for basic living . In 1988 this poverty line the market basement was $20,230 for a four person family. This is “roughly half of the LICO… poverty line incomes”

Income inequality is defined as “Income inequality is the extent to which income is distributed unevenly in a country. It is an important indicator of equity in an economy, and has implications for other social outcomes such as crime and life satisfaction(Conference Board)." Therefore income inequality can also be defined as the concentration of wealth in the hands of a few, rather than an equal distribution of prosperity among citizens. In Canada, the unequal distribution of wealth has increased over the past twenty years. Though compared to the United States, Canada is in a much better position with greater social mobility. The fact remains that compared to

This imbalance has not been seen since before 1917 and during the Great Depression, when inequality peaked. Additionally, income inequality is on a continued trend towards a further disproportion. Evidenced by the Gini Index, a “standard economic measure of income inequality” (7) where a score of 0.0 on shows a perfect equality in income distribution and a score of 1 means one person takes all of the income, the United States has one of the highest of income disparities of the 35 members countries of the Organisation for Economic Co-operation and Development (OECD) (10), at 0.469 on the Gini index (8). The UN indicates that a coefficient of 0.4 and above is a predictor for social unrest and above 0.5 indicates a severe gap between the wealthiest class and the working

in terms of income inequality. It is the huge fact that income inequality is higher in Mexico than the U.S. The graphs also support this reality. According to the income inequality graph of Mexico, income inequality is much higher in 1989 in Mexico because the gini index is 54,34% so it is the closest point to 100% in the graph. The income inequality graph of Mexico has fluctuating trend until 2006. After that, the trend goes stable. The lowest income inequality for Mexico happens in 2004 according to the gini index which is 46,05%. This percentage is the furthest from 100%. As for the U.S., looking at the income inequality graph of the U.S., the closest point to 100% of this graph is 41,75% in 2007. One of the reason of this increasing of income inequality may be the financial crisis of 2008. On the other hand, the lowest income inequality for the U.S. occurs in 1986 with 37,33% gini

Mark Pearson from the OECD, told BBC News: "It's not just income that we're seeing being very concentrated - you look at wealth and you find that the bottom 40% of the population in rich countries have only 3% of household wealth whereas the top 10% have over half of household wealth." (Anthony Reuben, 2015)

There are several types of poverty, the most appalling form of poverty is absolute poverty; this type of poverty can be defined as the inability to secure the basic necessities for physical survival (Richmond and Saloojee, 2005, p.35).This is usually measured by comparing income to expenses used to buy goods and services. Organizations usually define absolute poverty in terms of people who live on less than $1.25 a day, international organizations such as the World Bank use these types of monetary figures to measure poverty (Murray, 2011, p.245). Other organizations and economists, politicians and humanitarians think that living on less than two dollars a day is the indicator for living in poverty. It is believed that one billion people live on less than one dollar a day and that three billion people live off of less than two dollars a day (Seabrook, 2007, p.47). Regardless of the amount that is considered to be living in poverty most organizations have this perspective that poverty is about

To estimate that income distribution, there are many determinants that have examined by many people such as Choo (1978), Kim and Ahn (1987), Ahh (1992). From these estimations, we can examine the level of income inequality by using various methods. From the topic, That why I’m interested in the income inequality in South Korea during crisis(1997) among income groups compare to mid – 1970s to see how much the level of income inequality change by looking at the direction of these indicators the data from income shares, gini coefficient, headcount index, and mean consumption per month in South

The situation keeps aggravating despite of several poverty alleviation programs that are implemented every year. The main reason for such failure, apart from the implementation issues, would be the measurement and numbers on which these programs are based. Appropriate measurement is central to analyzing and understanding poverty and its alleviation.