Many Studies Measure Inequality with the 90-10, 50-10, or 90-50

question 10

Multiple Choice

Many studies measure inequality with the 90-10, 50-10, or 90-50 wage gaps rather than with the Gini coefficient. Why?

• A)The Gini coefficient is poorly defined.
• B)The Gini coefficient is ambiguous in terms of where in the earnings distribution inequality exists.
• C)The Gini coefficient tends to jump around from one year to the next due to extreme outliers.
• D)The Gini coefficient is a poor measure of international comparisons of inequality.
• E)The Gini coefficient fails to take into account the entire wage distribution.

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