An Analysis of Relationship among Income Inequality, Poverty, and Income Mobility, Based on Distribution Functions

Abstract

Many studies show that the relationship among income inequality, poverty, and income mobility needs to be further discussed. Meanwhile, some researches on Distribution Function offer new perspective and methods to analyze this issue. First, this paper expresses the relationship among the Gini coefficient, poverty ratio, and income mobility of 5 common Distribution Functions through math deduction; this finding cannot be found in relevant literatures. Furthermore, an empirical research result proves that the income distribution of urban residents in the period from 2005 to 2010 fits Log-Logistic Distribution. On the basis of the above analysis and empirical data, the paper explores the relations of income inequality, poverty, and income mobility of urban residents and draws some useful conclusions.