INEQUALITY

• Hina Khalid 10070621-001• Iqra Farooq 10070621-009• Maria Aslam 10070621-017• Ali Irfan shah 10070621-031• Hinza Riaz 10070621-045• Umer Jalil 10070621-053• Gulsher 10070621-055• Hassan Naqi 10070621-063

Group Members

Hina Khalid10070621-001

TOPIC

Measurements ofinequality

Measurement of Inequality

• Kuznets Ratio• Lorenz Curve • The Gini Coefficient• Gender Inequality Index

Kuznets Ratio

•  The Kuznets ratio is a measurement of the ratio of income going to the highest-earning households (usually defined by the upper 20%) and the income going to the lowest-earning households

• Commonly measured by 40% lower and 20% higher income receiving groups. Comparing 20% to 20%, perfect equality is expressed as 1; 20% to 40% changes this value to 0.5.

CONT…

• Kuznets had two similar explanations for this historical phenomenon

• workers migrated from agriculture to industry; and rural workers moved to urban jobs.

• In both explanations, inequality will decrease after 50% of the shift force switches over to the higher paying sector.

Lorenz curve

• A model developed by economist Max Lorenz in 1905.

• It is often associated with income distribution calculations

Iqra Farooq10070621-009

TOPICMeasurements of

Inequality

• A – Equality Diagonal Population = Income

• B – Lorenz Curve • C – Difference Between

Equality and Reality

AA

BB

CC

Cumulative PopulationCumulative Population

Cumulative Incom

eCum

ulative Income

The Gini CoefficientThe Gini Coefficient

Invented by the Italian statistician Corado Gini. An equality diagonal represents perfect equality: at every point, cumulative population equals cumulative income.

Invented by the Italian statistician Corado Gini. An equality diagonal represents perfect equality: at every point, cumulative population equals cumulative income.

Gender Inequality Index

• A composite measure reflecting inequality in achievements between women and men in three dimensions

• Reproductive health• Empowerment • The labor market.

Umer Jalil10070621-053

TOPICInequality in Pak

w.r.t Gini coefficient

INEQUALITY ACCORDING TO GINI COEFFICIENT OF PAKISTAN 1963-99 

1963-64  0.348  0.368  0.355 1966-67  0.314  0.388  0.351 1968-69  0.293  0.37  0.328 1984-85  0.345  0.379  0.428 1985-86  0.33  0.354  0.355 1987-88  0.307  0.366  0.348 1990-91  0.41  0.390  0.407 1992-93  0.367  0.384  0.39 1994-95  0.40  0.35  0.40 1996-97  0.41  0.38  0.40 1998-99  0.40  0.33  0.41 

Years  Rural areas  Urban areas  Total 

Explanation

• Inequalities in urban areas were higher than in rural areas.

• According to their analysis, inequality increased in both urban and rural areas of Pakistan during 1969-70 and 1979.

• For Pakistan, the value of the Gini-coefficient was 0.329 in 1969-70 and 0.376 in 1979

CONT…

• It is observed that during 1980s income distribution improved from 0.428 in 1984-85 to 0.348 in 1987-88. During the same period, the Gini-coefficient for rural areas improved from 0.345 to 0.307 while there was a little improvement in the income distribution in the urban areas of Pakistan. The Gini-coefficient decreased from 0.379 in 1984-85 to only 0.366 in 1987-88 as shown in table.

Irfan Shah10070621-031

TOPIC

Inequality in India w.r.t Gini

coefficient

Inequality According To Gini Coefficient Of India

YEAR GINI COEFFICIENT

I970 30.38

1977 32.14

1983 31.49

1990 29.69

1992 32.02

1999 29.95

2002 42.00

2004 35.5

CONT…

Dr Sonali BhattacharyaSymbiosis Centre of Management and Human Resource Development,

Hinjewadi, Pune-411057INDIA

 

Hinza Riaz10070621-45

TOPIC

Inequality in Bangladesh w.r.t Gini coefficient

Bangladesh

• Bangladesh is considered as a developing economy which has recorded GDP growth above 5% during the last few years

• Three fifths of Bangladeshis are employed in the agriculture sector, three quarters of exports revenues come from garment industry.

• Obstacles to sustainable development in Bangladesh are overpopulation, poor infrastructure, corruption, political instability and a slow implementation of economic reforms.

Maria Aslam10070621-017

TOPIC

Least Inequality in Different Countries

5 Countries with least Inequality

• Luxembourg 26.0• Serbia 26.0• Norway 25.0• Hungary 24.7 • Sweden 23.0

Gulsher10070621-055

TOPIC

Inequality in Different Countries

 10 Countries with the Worst Inequality:

• The UNDP ranked countries and regions based on a number of factors, including their Gini coefficient, named for Italian statistician Corrado Gini.

• We have listed the world's most advanced economies based on their Gini score, with zero marking absolute equality and 100 absolute inequalities

CONT…

• Hong Kong • Singapore• U.S• Israel• Portugal

Hassan Naqi10070621-063

TOPIC

Inequality in Different Countries

CONT…

• New Zealand• Italy (tie)• Britain• Australia• Ireland (tie)• Greece (tie)

Rank of Pakistan and India

RANK COUNTRY GINI SCORE YEAR EST

79 India 36.8 2004

109 Pakistan 30.6 FY07/08

http://www.thinkonthat.com/archives/5420

CONCLUSION

• According to Gini coefficient Pakistan’s rank is 109 and its Gini score is 30.6 so as compared to India, Pakistan has more equality.

• The country with least inequality is Sweden and the country with worst inequality is

Hong Kong • Unequal distribution of power, prestige and

wealth is main reason of inequality.

References

• http://www.investorwords.com/6570/Lorenz_curve.html• 2010 GII: Construction & Analysis• http://www.thp.org/what_we_do/program_overview/

empowering_women?gclid=CK-39LOF8KwCFQRO3godQzUXLw

• Dr Sonali Bhattacharya Symbiosis Centre of Management and Human Resource Development, Hinjewadi, Pune-411057 INDIA

• Tradingeconomics.com• http://www.thinkonthat.com/archives/5420• http://finance.yahoo.com/news/pf_article_107980.html• http://finance.yahoo.com/news/pf_article_107980.html

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