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Income Inequality and Poverty Chapter 20 The Distribution of Income “A person’s earnings depend on the supply and demand for that person’s labor, which in turn depend on natural ability, human capital, compensating differentials, discrimination, and so on.” The Measurement of Inequality How much inequality is there in our society? How many people live in poverty? What problems arise in measuring the amount of inequality? How often do people move among income classes? The Distribution of Income in the United States: 1998 U.S. Income Inequality Imagine that you. . . . . . lined up all of the
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