AUSTRALIA: DISTRIBUTION OF INCOME & WEALTH

?Income is the amount of funds or other benefits, flowing to individuals or households from the sale of factors oer time. ?Wealth is the value of accumulated assets everyplace time. ?Income inequality refers to the stratum which income is unevenly distributed among people. ?Income distribution is measured by dint of:* The Lorenz Curve ? a representation of the degree of income inequality make a level of deviation of the distribution of income from a declivity of absolute equality amongst income earners. * The Gini Co-efficient ? a mathematical indicator if the degree of income in equality, represented by a number amid 0 and 1, where the closer to 1 the greater the inequality. TRENDS IN INCOME & adenosine monophosphate; WEALTH:?Varies concord to age, gender, occupation, ethnic background, family structure & adenine; geographics* Age: incomes improve manpowert until retirement ? 45-55 yrs collar approx. 2.5x the income of 15-24 yrs* Gender: women receive 80% of men?s? ? P/ T occupations* stemma: Labourers (mean income $412) and managers &type A; administrators ($1187) (2000). * Ethnic Background: ability to speak English, skills & vitamin A; statemental activity. * Family Structure: single p atomic number 18nt familles vs. married coupled families* geography: on average NSW ($482 p/w) and TAS ($391) (2000).

COSTS & BENEFITS OF INCOME contrariety? economical Benefits:* Encourage labour force to improve their education & skills ? better rewards as incentive* Encourage processers to work at longer hours ? higher incomes and so higher EG* Encourage entrepreneurs to fleet more risks ? vital to increase productive c! apacity? economic Costs:* Inequality can reduce EG* Reduces consumption & investment* Increased poverty & social problems are expensive to solve?sociable Benefits* Very Limited? amicable Costs* Social class divisions ? rich doesn?t gadfly with poor* PovertyGOVERNMENT POLICIES TOWARDS INCOME INEQUALITY?Directly:* Fiscal Policy ? by means of govt. taxation and spending, redistributes income amongst poor. Recent push in fiscal rest has led to a reduction of this* Changes To... If you want to get a full essay, order it on our website: BestEssayCheap.com

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