{"id":676,"date":"2020-03-24T04:51:48","date_gmt":"2020-03-24T04:51:48","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/chapter\/glossary-income-distribution\/"},"modified":"2023-05-22T19:21:26","modified_gmt":"2023-05-22T19:21:26","slug":"glossary-income-distribution","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/chapter\/glossary-income-distribution\/","title":{"raw":"Glossary: Income Distribution","rendered":"Glossary: Income Distribution"},"content":{"raw":"<div class=\"titlepage\"><\/div>\n<dl><dt>earned income tax credit (EITC)<\/dt><dd>a method of assisting the working poor through the tax system<\/dd><dt>effective income tax<\/dt><dd>percentage of total taxes paid divided by total income<\/dd><dt>estate tax<\/dt><dd>a tax imposed on the value of an inheritance<\/dd><dt>income inequality<\/dt><dd>when one group receives a disproportionate share of total income or wealth than others<\/dd><dt>income<\/dt><dd>a flow of money received, often measured on a monthly or an annual basis<\/dd><dt>Lorenz curve<\/dt><dd>a graph that compares the cumulative income actually received to a perfectly equal distribution of income; it shows the share of population on the horizontal axis and the cumulative percentage of total income received on the vertical axis<\/dd><dt>Medicaid<\/dt><dd>a federal\u2013state joint program enacted in 1965 that provides medical insurance for certain (not all) low-income people, including the near-poor as well as those below the poverty line, and focusing on low-income families with children, the low-income elderly, and the disabled<\/dd><dt>near-poor<\/dt><dd>those who have incomes just above the poverty line<\/dd><dt>poverty line<\/dt><dd>the specific amount of income needed for a basic standard of living<\/dd><dt>poverty rate<\/dt><dd>percentage of the population living below the poverty line<\/dd><dt>poverty trap<\/dt><dd>antipoverty programs set up so that government benefits decline substantially as people earn more income\u2014as a result, working provides little financial gain<\/dd><dt>poverty<\/dt><dd>the situation of being below a certain level of income needed for a basic standard of living<\/dd><dt>progressive tax system<\/dt><dd>a tax system in which the rich pay a higher percentage of their income in taxes, rather than a higher absolute amount<\/dd><dt>quintile<\/dt><dd>dividing a group into fifths, a method often used to look at distribution of income<\/dd><dt>redistribution<\/dt><dd>taking income from those with higher incomes and providing income to those with lower incomes<\/dd><dt>Supplemental Nutrition Assistance Program (SNAP)<\/dt><dd>a federally funded program, started in 1964, in which each month poor people receive SNAP cards they can use to buy food<\/dd><dt>safety net<\/dt><dd>the group of government programs that provide assistance to the poor and the near-poor<\/dd><dt>wealth<\/dt><dd>the sum of the value of all assets, including money in bank accounts, financial investments, a pension fund, and the value of a home<\/dd><\/dl>","rendered":"<div class=\"titlepage\"><\/div>\n<dl>\n<dt>earned income tax credit (EITC)<\/dt>\n<dd>a method of assisting the working poor through the tax system<\/dd>\n<dt>effective income tax<\/dt>\n<dd>percentage of total taxes paid divided by total income<\/dd>\n<dt>estate tax<\/dt>\n<dd>a tax imposed on the value of an inheritance<\/dd>\n<dt>income inequality<\/dt>\n<dd>when one group receives a disproportionate share of total income or wealth than others<\/dd>\n<dt>income<\/dt>\n<dd>a flow of money received, often measured on a monthly or an annual basis<\/dd>\n<dt>Lorenz curve<\/dt>\n<dd>a graph that compares the cumulative income actually received to a perfectly equal distribution of income; it shows the share of population on the horizontal axis and the cumulative percentage of total income received on the vertical axis<\/dd>\n<dt>Medicaid<\/dt>\n<dd>a federal\u2013state joint program enacted in 1965 that provides medical insurance for certain (not all) low-income people, including the near-poor as well as those below the poverty line, and focusing on low-income families with children, the low-income elderly, and the disabled<\/dd>\n<dt>near-poor<\/dt>\n<dd>those who have incomes just above the poverty line<\/dd>\n<dt>poverty line<\/dt>\n<dd>the specific amount of income needed for a basic standard of living<\/dd>\n<dt>poverty rate<\/dt>\n<dd>percentage of the population living below the poverty line<\/dd>\n<dt>poverty trap<\/dt>\n<dd>antipoverty programs set up so that government benefits decline substantially as people earn more income\u2014as a result, working provides little financial gain<\/dd>\n<dt>poverty<\/dt>\n<dd>the situation of being below a certain level of income needed for a basic standard of living<\/dd>\n<dt>progressive tax system<\/dt>\n<dd>a tax system in which the rich pay a higher percentage of their income in taxes, rather than a higher absolute amount<\/dd>\n<dt>quintile<\/dt>\n<dd>dividing a group into fifths, a method often used to look at distribution of income<\/dd>\n<dt>redistribution<\/dt>\n<dd>taking income from those with higher incomes and providing income to those with lower incomes<\/dd>\n<dt>Supplemental Nutrition Assistance Program (SNAP)<\/dt>\n<dd>a federally funded program, started in 1964, in which each month poor people receive SNAP cards they can use to buy food<\/dd>\n<dt>safety net<\/dt>\n<dd>the group of government programs that provide assistance to the poor and the near-poor<\/dd>\n<dt>wealth<\/dt>\n<dd>the sum of the value of all assets, including money in bank accounts, financial investments, a pension fund, and the value of a home<\/dd>\n<\/dl>\n","protected":false},"author":32,"menu_order":12,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-676","chapter","type-chapter","status-publish","hentry"],"part":623,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/users\/32"}],"version-history":[{"count":1,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/676\/revisions"}],"predecessor-version":[{"id":677,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/676\/revisions\/677"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/parts\/623"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/676\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/media?parent=676"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapter-type?post=676"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/contributor?post=676"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/license?post=676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}