Hi,
I am interested to interpret percentile ratios. I have calculated Gini coefficient. Stata also shows me distribution of income by considering the ratios of different percentages of population ? In Country A poverty is increased. However, inequality is decreased.
2015 (in this year poverty decreased)
Gini=0.43 p90/10=7.588 P90/P50=2.528 P10/P50=0.333 P75/P25=2.649
2017 (poverty increased)
Gini=0.41
p90/10=8.066 p90/50=2.661 p10/50=0.330 p75/25=2.545
p90/p10 = it compares top 10% to bottom 10%. I see that ratio is increased. Can I make any conclusions about the welfare of the population?
Best regards,
Davit
Perhaps these may be helpful to you:
1. EDRM611 - Applied Statistics in Education and Psychology I
https://www.andrews.edu/~thayerj/EDRM611/Summer2001ObjectivesUnit3.htm
EDRM611 - Applied Statistics in Education and ... To interpret a percentile rank it is essential to know ... Percentages are measured on a ratio scale no matter ...
2. What Percentile Tells You about a Statistical Value - dummies
www.dummies.com/education/math/statistics/what-percentile-tells... What Percentile Tells You about a Statistical Value; What Percentile Tells You about a Statistical ... interpretation: Being at the 95th percentile means ...
3. Percentiles, Fractiles, and Quartiles.www.pindling.org/.../Chapter2_descript_stat/percentiles_overview.htm Organizing and Decsribing Data Percentiles ... Know the reference points needed to interpret percentage, percentile, ... Percentage is measured on a ratio ...
Dennis
Dennis Mazur
You can interpret it in many ways. Foe example: perhaps, among the medium-rich, there is little income differentiation
In scientific research we usually focus as researchers on high percentages and neglect the low rates and the right is to provide an explanation for both high and low ratios, especially if the subject of the study relates to a phenomenon that concerns the community
In the case at hand I would first ask by which criteria you stated that poverty increased our decreased.
As for the presented indices they measure different aspects of inequality. Gini describes inequality among the general population, not only some of its tails as the taps do. Here inequality across the whole population has decreased in 2017.
We also notice that together with poverty increase in 2017, inequality is deeper between the top and the bottom income tails of the population. The rich are getting richer and the poor poorer. The only ratio that decreased is P75/P25 suggesting that a slight catch-up has occurred in the middle class incomes.
That's my suggestion. Hope was helpful.
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