LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 7, Problem 12P
a)
To determine
The Gini coefficient for the country.
b)
To determine
The 90-10 wage gap for any such ‘p’.
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Suppose the bottom 50 percent of a population (in terms of earnings) all receive an equal share of p percent of the nationās income, where 0 ā¤ p ā¤ 50. The top 50 percent of the population all receive an equal share of 1 - p percent of the nationās income. a. For a ny s uch p, what is the Gini coefficient for the country? b. For any such p, what is the 90-10 wage gap?
Suppose the bottom 50 percent of a population (in terms of earnings) all receive an equal share of p percent of the nationās income, where 0 ā¤ p ā¤ 50. The top 50 percent of the population all receive an equal share of 1 ā p percent of the nations income.
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