Julien Barlan, Sciences Po Paris, Department of Economics

Economic inequality and income distribution

Population % Pop. % Cum Pop. Income Total income % Tot. pnt per cat.
1 1 1.64% 1.64% 3 3 0.50%
2 2 3.28% 4.92% 3 6 1.00%
3 5 8.20% 13.11% 5 25 4.18%
4 3 4.92% 18.03% 6 18 3.01%
5 8 13.11% 31.15% 7 56 9.36%
6 3 4.92% 36.07% 8 24 4.01%
7 11 18.03% 54.10% 11 121 20.23%
8 12 19.67% 73.77% 12 144 24.08%
9 7 11.48% 85.25% 12 84 14.05%
10 9 14.75% 100.00% 13 117 19.57%
Total 61 100 80 598 100

Lorenz curve mu
100.00% n2
1/(2*n2*mu)
Cumulative shares of income

80.00% ∑∑njnk*abs(yj-yk)

60.00% Lorenz Curve

Perfect
GINI
40.00%
equality line COEFFICIEN
20.00% T
0.00% COEFFICIENT
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
OF VARIATION
Cumulative shares of population

n1nk abs(y1-yk)prod (n1k1*an2nk abs(y2-yK) prod (n2k2*an3nk

1 0 0 2 0 0 5
2 0 0 4 0 0 10
5 2 10 10 2 20 25
3 3 9 6 3 18 15
8 4 32 16 4 64 40
3 5 15 6 5 30 15
11 8 88 22 8 176 55
12 9 108 24 9 216 60
7 9 63 14 9 126 35
9 10 90 18 10 180 45

total 415 830

JULIEN BARLAN IEP PARIS 2010 Credited reproduction for academic purpose is authorized
 Julien Barlan, Sciences Po Paris, Department of Economics

n4nk abs(y4-yk)prod (n4y4*an5nk abs(y5-yK) prod (n5nk*an6nk

3 3 9 8 4 32 3
6 3 18 16 4 64 6
15 1 15 40 2 80 15
9 0 0 24 1 24 9
24 1 24 64 0 0 24
9 2 18 24 1 24 9
33 5 165 88 4 352 33
36 6 216 96 5 480 36
21 6 126 56 5 280 21
27 7 189 72 6 432 27

total 780 1768

n7nk abs(y7-yk)prod (n7nk*an8nk abs(y8-yk) prod(n8nk*abn9nk

11 8 88 12 9 108 7
22 8 176 24 9 216 14
55 6 330 60 7 420 35
33 5 165 36 6 216 21
88 4 352 96 5 480 56
33 3 99 36 4 144 21
121 0 0 132 1 132 77
132 1 132 144 0 0 84
77 1 77 84 0 0 49
99 2 198 108 1 108 63

Total 1617 1824

n10nk abs(y10-ykprod (n10nk*abs(y10-yk)) Graphical representa

9 10 90 Gini=0
18 10 180 0.00%
45 8 360 10.00%
27 7 189 20.00%
72 6 432 30.00%
27 5 135 40.00%
99 2 198 50.00%
108 1 108 60.00%
63 1 63 70.00%
81 0 0 80.00%
90.00%
Total 1755 100.00%

JULIEN BARLAN IEP PARIS 2010 Credited reproduction for academic purpose is authorized
 Julien Barlan, Sciences Po Paris, Department of Economics

e distribution

% Cum. tot. pnt. pr cat.

0.50%
1.51%
5.69%
8.70%
18.06%
22.07%
42.31%
66.39%
80.43%
100.00%

9.80327868852459
3721
1.370689182521E-05
12172

0.1668402873

0.31171932162

abs(y3-yk) prod
2 10
2 20
0 0
1 15
2 80
3 45
6 330
7 420
7 245
8 360

1525

JULIEN BARLAN IEP PARIS 2010 Credited reproduction for academic purpose is authorized
 Julien Barlan, Sciences Po Paris, Department of Economics

abs(y6-yK) prod
5 15
5 30
3 45
2 18
1 24
0 0
3 99
4 144
4 84
5 135

594

abs(y9-yk) prod
9 63
9 126
7 245
6 126
5 280
4 84
1 77
0 0
0 0
1 63

1064

Graphical representation
Lorenz curve X Lorenz curve Y
0.00% 0.00%
1.64% 0.50%
4.92% 1.51%
13.11% 5.69%
18.03% 8.70%
31.15% 18.06%
36.07% 22.07%
54.10% 42.31%
73.77% 66.39%
85.25% 80.43%
100.00% 100.00%

JULIEN BARLAN IEP PARIS 2010 Credited reproduction for academic purpose is authorized