equitybeagoalofeconomicpolicy(国际经贸高级.pptVIP

Unit NineShould Equity Be a Goal of Economic Policy? TEXT Growing Inequality The degree of income inequality varies greatly from region to region. It is greatest in Latin America and sub-Saharan Africa, and lowest in Eastern Europe; other regions fall between these two extremes. In Latin America, the average Gini coefficient—the most commonly used measure of inequality, with 0 representing perfect equality and 1 representing total inequality—is almost 0.5. The average Gini coefficient in sub-Saharan Africa is slightly lower, but there is considerable variation among countries. Income inequality has a regional dimension in both Africa and Latin America—average incomes are significantly higher in urban areas than in rural areas. Unit NineShould Equity Be a Goal of Economic Policy? In recent years, income inequality has been increasing in a large number of countries. This increase has been most striking in the transition economies, where the average Gini coefficient had been around 0.25 until the late 1980s; by the mid1990s, it had risen to more than 0.30. While this may not appear to be a large increase, it is quite significant for the short period being assessed. Gini coefficients tend to be relatively stable in countries over long periods. Income inequality has also increased in several major industrial countries and is beginning to increase in some East Asian countries. Unit NineShould Equity Be a Goal of Economic Policy? Much of the debate about income distribution has centered on wage earnings. But wages tell only part of the story. The distribution of wealth (and, by implication, capital income) is more concentrated than labor income. In Africa and Latin America, unequal ownership of land has been identified as an important factor in the overall distribution of income. Furthermore, in recent years, there has been a shift from labor to capital income (including income from self employment) in many countries. In tran