Figure 5.28 presents a comparative visualization of Gini coefficients for both market income and disposable income across various countries, based on data from the OECD Income Distribution Database. In the chart, countries are arranged from least to most unequal according to their disposable income Gini coefficient, which illustrates the varying impact of government redistribution. An alternative visualization of this dataset is also available on the Our World in Data (OWiD) website.

Figure 5.28: Cross-Country Comparison of Gini Coefficients for Market and Disposable Income

The OECD Income Distribution Database, compiled by the Organisation for Economic Co-operation and Development, is a comprehensive dataset on income inequality. It serves as the source for various economic analyses and visualizations, including the data presented in Figure 5.28 which compares Gini coefficients for market and disposable income across different countries.

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Economic inequality refers to the unequal distribution of wealth, income, and resources within a society or between societies. This can be caused by a variety of factors, including differences in education and skills, access to capital and technology, and the distribution of job opportunities. Economic inequality can have a significant impact on the well-being of individuals and communities, and can contribute to social and political tensions.

Economic Inequality

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

The study of the impact disability has on individual's wealth.

Economic Impacts of Disability

The connection between globalization and economic inequality refers to the relationship between the increasing economic integration of countries and peoples around the world and the unequal distribution of wealth, income, and resources within and between societies. Globalization can both drive economic inequality by exacerbating existing disparities and contribute to efforts to reduce it by promoting economic growth and increased prosperity.

Connection between Globalization and Economic Inequality

Total market income is the sum of all earnings an individual or household receives before the deduction of taxes and the addition of government transfers. This income is derived from sources such as employment, self-employment, savings, and investments.

Total Market Income

Disposable income is the net income an individual or household receives over a specific period from various sources, including profits, interest, rent, and labor earnings, after accounting for taxes paid and government transfers received. It represents the maximum amount that can be spent on consumption during that period without reducing overall wealth. As it reflects the actual resources available for spending and saving, it is considered a more precise measure of living standards than market income and is a crucial metric for evaluating income inequality.

Disposable income

OECD Income Distribution Database

The concept of 'winner-take-all competition' is relevant to understanding economic inequality. Further information on this topic is available in capstone Unit 21 of The Economy 1.0.

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