Answer to Question #52783 in Macroeconomics for mastewal

Question

choose two countries that interest you one rich and one poor. what is the income per person in each country? find some data on country characteristics that might help explain the difference in income investment rates, population growth rates , educational attainment ,and so how might you figure out which of these factors is most responsible for the observed income difference?

Answer 1

There are many reasons for economic inequality within societies. Recent growth in overall income inequality, at least within the OECD countries, has been driven mostly by increasing inequality in wages and salaries.
There are many different ways to measure income inequality and wealth inequality. Different choices lead to different results. OECD has inspected 8 types of income inequality concepts.
Differences in national income equality around the world as measured by the national Gini coefficient.