Measuring inequality
Measuring changes in inequality
helps determine the effectiveness of policies and other activities, especially
those aimed specifically at reducing inequality. Measuring inequality also enables the
community to understand better how all South Australians are faring.
There are many ways to
examine inequality, and to describe how to address it.
One can:
1. Focus upon those who are the most
disadvantaged, and aim to improve their outcomes - (e.g. perhaps the most
disadvantaged 20% of the population); or
2. Focus on the gap between those at the outer
ends of the socioeconomic hierarchy (those who are the most disadvantaged and
those who are the least disadvantaged) and aim to reduce the gap between
them - (e.g. narrow the gap between the
least disadvantaged 20% and most disadvantaged 20% of the population); or
3. Focus on minimising the differences or gradient
that exists across the whole population - (e.g. raise all groups in the
population to the position of the least disadvantaged 20%).
Often, a range of
activities are undertaken which use all of the approaches listed above to
address inequality.
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