The effect of changes in the population on several measures of income distribution.
Abstract
An economic model is used to explore the relationship between population growth and 2 of the most commonly used income distribution statistics--the share of the rich and the poor in total income and the rate of growth of real income of the rich and the poor. Brazilian statistics applied to the model illustrate the difficulty of interpreting the common inequality measures under conditions of rapid population growth. Neither income shares nor growth rates can tell much about the degree of progressivity in the growth strategy of a particular country without adjustment. Absolute income for the base-period poor or base-period teenagers was greater than reported for either the poor or teenagers. However the rise in inequality was also greater for the base-period population. Growth in Brazil was seen to be even more regressive than previously thought. Significant upward mobility was however still possible.
- Sources
- openalex