The Distribution of Income and Wealth in UK

· Income is a flow. It measures the receipt of money per period of time ( e.g. £200 a week)
· Wealth is a Stock. It measures the value of a person’s wealth at a given point of time e.g. £150,000

The Size distribution of income in the UK

Measuring the Distribution of Income

The Gini Coefficient. This is the area between the Lorenz curve and the 45’ line and the total area under the 45’ line
The Higher the Gini Coefficient the greater the inequality

Absolute Poverty:

This measures the number of people living below a certain income level, which is necessary to be able to afford basic goods and services

Relative Poverty:

This measures the income of households compared to the average income in the country. Thus increased economic growth may lead to better living standards however if this is distributed unequally then relative poverty will increase.

· 1998 UN Human Development Report cited UK as a country with one of the highest levels of poverty in industrialised nations

· Nine million people in the UK receive income support from the govt

 

 

Essays and Revision Notes on Inequality

Essays on Inequality

Min Wage

Distribution of Income in UK

Policies to Reduce inequality

Causes of Poverty

Tax System in UK

Poverty, Income Inequality and Economic Growth