World Values Survey, If we collapse upper and lower middle class, a total of Of that middle-class group, The major drawback of this approach is that the answers are subjective, which inherently has some potential weaknesses. To illustrate the point, using the same survey data,
Research data Income inequality and limitations of the gini index: Recent research has shown that the Gini index as a measure of income inequality has some limitations. Margaret Chitiga, Emmanuel Sekyere and Nthabi Tsoanamatsie examine some of these flaws and their relevance to income inequality in South Africa.
The Gini coefficient or index is a prominent measure of income inequality. It leverages a scale of 0 to 1 to derive deviation from perfect income equality. A Gini index of 0 would imply perfect income equality, while an index of 1 would imply complete income disparity.
The World Bank is the main organisation that provides the Gini index data. However, data is only available for countries. Brazil comes second with a Gini index of 0. China, Russia and India follow in the far distance, although the latest data available for China and India was from Table 1.
In terms of international rankings, Seychelles is ranked as the most unequal country in the world, with Namibia third and South Africa fourth. The Gini index is a relative measure that fails to capture absolute differences in income. Limitations of the Gini index The Gini index has been found to have a number of limitations.
Income can be defined at the household level weighted by household size, other scales or at individual level taking into consideration financial holdings or just wage earnings.
Each income definition gives a different measure of income and different levels of income inequality. Thus differences in income concepts can lead to differences in measures of income, inequality and the ranking of countries.
A Gini index based on individual incomes is different to a Gini index based on household incomes for the same country. As a result, the rankings of countries change depending on whether the index is based on household incomes or individual incomes, creating some subjectivity in its use and interpretation.
The income of the informal sector is also excluded from the measurement of income inequality using the Gini index.
In agro-based subsistence-driven economies, income could exist in different forms other than money. Countries also have different income tax regimes; regressive, proportional and progressive, with some being more redistributive than others.
Additionally, the Gini index is a relative measure that fails to capture absolute differences in income. It is possible for the Gini index of a country to rise due to increasing income inequality while the number of people living in absolute poverty is actually declining.
This is because the Gini index violates the Pareto improvement principle, which says income inequality can increase with an increase in all incomes in a given society.
Thus, although the level of income inequality has increased, the Gini index fails to capture the fact that absolute levels of income have also increased. Similarly, the Gini index could reflect a lower level of income inequality in a scenario where there is a decrease in all incomes in a given society.
Furthermore, two countries could have different income distributions but the same Gini index. Consequently, as a basis for ranking the differences in income inequality between countries, the Gini index could be misleading.
The index does not capture social benefits or interventions that bridge inequality between rich and poor. The Gini index also does not capture social benefits or other interventions aimed at bridging inequality between rich and poor. Subsidised housing, healthcare, education and social grants for the vulnerable are measures that subsidise household incomes, reducing income inequality to some extent.
Demographic changes or characteristics of the population are not reflected by the Gini index. Countries with high ratios of elderly people whose main sources of income are pensions, or countries with high student ratios are likely to have higher levels of income inequality as measured by the Gini index.Abstract.
Let us begin with an assumption: the most fitting category with which to analyse the patterns of stratification within modern South Africa are Weberian estates. Identify the different systems of social stratification. Explore how global stratification is maintained; explain the impact of neocolonialism and The enslavement of children for work in sex is a problem in Africa, Asia, and South America.
The Impact of Academic Recommender Systems on the Dissemination of Scientific Knowledge. - Grant Funded by NSF's Science of Science Policy Program (Award #).
2 lowed a significant proportion of previously disenfranchised blacks to change the pattern of social stratification of the managerial and upper classes. In every society, from the hunting and gathering society to the postindustrial society, the most common basis for social stratification has been _____.
Gender The trend in the United States in which most poor families are headed by women is called ________. Chapter 7 – Stratification & Social Mobility - Study guide - What Social Stratification is • The hierarchical arrangement of large social groups based on their control over basic resources - The four major dimensions of stratification • Slavery • Caste • Class - Slavery • An extreme form of stratification in which people are owned by others.
It is a closed system in which people.