Inequality and Poverty.

We are going to begin by considering static measures, discuss why we should worry about poverty and inequality, and then investigate dynamic issues of poverty.

One approach to measuring inequality: divide the population into groups corresponding to the personal distribution of income.

Examples are:

Quartiles -4- (25% groups),

Quintiles -5- (20% groups),

or deciles -10- (10% groups).

The basic idea is to divide the population into equal sized shares, and determine what percentage of total income is in the hands of each share.

Gabra herders, 1993 Income per person per day in US cents, First Rainy Season.

HH #	income per person per day	HH #	income per person per day	HH #	income per person per day	HH #	income per person per day
1	3	23	15	45	21	67	31
2	5	24	15	46	22	68	31
3	6	25	15	47	23	69	33
4	6	26	16	48	23	70	33
5	6	27	16	49	23	71	35
6	7	28	16	50	24	72	36
7	9	29	17	51	24	73	38
8	10	30	17	52	24	74	40
9	11	31	17	53	24	75	40
10	11	32	17	54	25	76	41
11	11	33	18	55	25	77	43
12	12	34	19	56	26	78	46
13	12	35	19	57	26	79	46
14	13	36	19	58	26	80	49
15	13	37	19	59	26	81	49
16	13	38	19	60	27	82	50
17	13	39	19	61	27	83	51
18	13	40	20	62	28	84	52
19	14	41	20	63	28	85	66
20	14	42	20	64