The data in the corresponding table characterizes the income

The data in the corresponding table characterizes the income distribution for a country. What percentage of the total population is categorized as belonging to the 2nd quintile? What percentage of the total income for the country is earned by the 3rd quintile? What is the cumulative share of income earned by the poorest 80% of the population?

Solution

1. Quintile is a statistical indicator that divides the entire data set into five equal parts with each containing 20% of total data.

Thus,

The percentage of the total population categorized as belonging to the 2nd quintile is 20%.

2. Calculate percentage of the total income for the country earned by 3rd quintile -

Percentage of total income = % of cumulative income earned by first 3 quintiles - % of cumulative income earned by first 2 quintiles

Percentage of total income = 37% - 18% = 19%

The percentage of the total income for the country earned by the 3rd quintile is 19%.

3. Poorest 80 percent of population implies percentage of population belonging to first four quintiles.

Calculate cumulative share of income earned by poorest 80% of the population -

Cumulative share = Share of income by first quintile + Share of income by 2nd quintile + Share of income by 3rd quintile + Share of income by 4th quintile

Cumulative share = 3% + 15% + 19% + 29% = 66%

The cumulative share of income earned by poorest 80% of the population is 66%.