Income Gap Ratio Formula

For example an individual living in a family or household with an income of 15 000 and a lil of 20 000 would have a low income gap of 5 000.

Income gap ratio formula. Income gap ratios analyze how far below or above a certain income level people or households are. 4 the average gap ratio for a given population is the average of these values as calculated for each person. The poverty gap ratio is measured as follows. For example statistics canada gives the example of people living in a household with an income of 15 000 per year.

Where p1 represents the poverty gap and is calculated as the sum of the relative distance between the poverty line z and income or consumption for. In percentage terms the gap ratio would be 25. An income gap is a gap in income between one group and another. If the low income cut off is 20 000 they would have a low income gap of 5 000.