This question has to do with earnings inequality. a. In class we discussed several reasons why earnings inequality has changed over time. One of those reasons was changing volatility. What is earnings volatility and how has it changed over time for men? How much of the increase in male earnings inequality is explained by earnings volatility? Why can changes in volatility not be relied upon as the main reason as to why inequality has increased overall in the US? b. The Gini coefficient, the 90/10 ratio, and the 50/10 ratio ignore relative intragenerational mobility. What is relative intragenerational mobility? Does this type of mobility tend to enhance or mitigate measures of earnings inequality? Explain your answer.
This question has to do with earnings inequality.
a. In class we discussed several reasons why earnings inequality has changed over time.
One of those reasons was changing volatility. What is earnings volatility and how has it
changed over time for men? How much of the increase in male earnings inequality is
explained by earnings volatility? Why can changes in volatility not be relied upon as the
main reason as to why inequality has increased overall in the US?
b. The Gini coefficient, the 90/10 ratio, and the 50/10 ratio ignore relative intragenerational
mobility. What is relative intragenerational mobility? Does this type of mobility tend to
enhance or mitigate measures of earnings inequality? Explain your answer.
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