Seminar 11 (Covers Chapter 7)



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Seminar 11


Seminar 11 (Covers Chapter 7)

  1. Using the following table draw diagram of Lorenz Curve? Calculate Gini Coefficient?Calculate 90-10 wage gap?




Shares of Population

Cum. Share of Population (%)

Share of Income (%)

Cum. Share of Income

0%

0%

0%

0%

Lowest 10%

10%

3.9%

3.9%

Lowest 20%

20%

5.0%




2nd Lowest 20%

40%

12.5%




Middle 20%

60%

16.0%




2nd Highest 20%

80%

21.2%




2nd Highest 10%

90%

14.6%




Highest 10%

100%

26.9%





  1. Using theoretical arguments discuss why elder people attain less education level than younger people?




  1. Discuss how ability distribution might affect the human capital attainment differences in the population? ( for a theoretical example See Seminar 9)


  1. What are the main arguments of rise in (skill premium) wage inequality in 1980s and 1990s?

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