Solution-Lorenz criterion, Has inequality gone up or down

Lorenz criterion

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Reference no: EM131311350

In Mexico in 1950, the richest 5% earned 40% of the income and the poorest 40% earned 14.3%of the income. In 1957, the richest 5% earned 37% of the income and the poorest 40% earned 11.3% of the income. In 1963, the richest 5% earned 28.8% of the income and the poorest 40% earned 10.1% of the income. Has inequality gone up or down between 1950 and 1957, between 1957 and 1963, and between 1950 and 1963, according to the Lorenz criterion? Justify answer graphically.

Reference no: EM131311350

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Lorenz criterion

Reference no: EM131311350

Reference no: EM131311350

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