Measuring Economic Participation And Social Protection

1504 words - 7 pages

Gender discrimination has always been a problem that affected our society, where women were and continue to be treated inferior to men and were downgraded to do domestic work. Although there have been several reforms in trying to lower inequality against women because of the now-known great importance to the development of society, it still, nonetheless plagues our society. The promotion of gender equality is co-existent with social protection and the first step to combating gender inequality, while simultaneously combating problems related to poverty and education. Inequality does not only exist in the form of gender inequality, but also in income distribution as well, where the top quintile of the population consumes far more than the bottom quintile of the population.
The existence of unequal income distribution can potentially lead to aristocracy, in which a few members or countries have control over most resources and income (Thomas Caroll & Associates, 2013). Dubner and Levitt as cited by Thomas Caroll and Associates use a classic example of the Black Disciples, in which gang members received a mere $3.30 per hour, with minimum wage being $5.15 and over half of the income was received by gang leader. The members forfeited the chance of earning the higher income with the probability of becoming the next gang leader; however 1 of 4 died in their pursuit of becoming gang leaders. This application can be used in real life, where wealth is concentrated among a wealthy few and the remaining individuals in society try their best to attain this position but are constrained due to several factors, such as, education, health and social mobility. Countries use different methods for measuring income inequality; however, the most common is the Gini Coefficient. The Gini coefficient is a number from 1 to 100 or 0 to 1 and the higher the number, the more inequality is present in the economy. The Lorenz curve places the population into quintiles on the horizontal axis and their share of total income on the vertical axis. The Gini coefficient is calculated on a Lorenz curve as depicted in Figure 1. As seen in the Figure, the Gini coefficient is calculated by finding the area of the shaded region.
Figure 1: Sample Lorenz Curve

(Source of Image:
In addition, the Robin Hood Index (also referred to the Ricci Index, Schutz Index, Hoover Index, Pietra Index or the Lindahl Index) is closely tied in with the Gini Coefficient, which is the level of income that needs to be transferred to the poor to achieve perfect equality (University of Delaware, 2012). First of all the Robin Hood Index is calculated by finding the mean of the total income and then dividing it by the amount of income that needs to be transferred to the poor so that equality can occur. Nevertheless, as aforementioned the Gini Index is a more accurate measure of inequality because it gives us the distribution of wealth among individuals and even countries. In the table below shows both the...

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