115-539: The Bolivarian missions are a series of over thirty social programs implemented under the administration of former Venezuelan president Hugo Chávez and continued by Chávez's successor, Nicolás Maduro . The programs focus on helping the most disadvantaged social sectors and guaranteeing essential rights such as health, education and food. The created missions created include Mission Robinson (literacy), Mission Barrio Adentro (free medical coverage), and Mission Mercal (affordable food). Using increasing oil prices of
230-435: A quadratic function across pairs of intervals or building an appropriately smooth approximation to the underlying distribution function that matches the known data. If the population mean and boundary values for each interval are also known, these can also often be used to improve the accuracy of the approximation. The Gini coefficient calculated from a sample is a statistic, and its standard error, or confidence intervals for
345-410: A basic level of well-being through subsidized social services such as healthcare , education , infrastructure, vocational training , and public housing. In a welfare state , the state assumes responsibility for the health, education, infrastructure and welfare of society, providing a range of social services such as those described. Some historians view systems of codified almsgiving , like
460-518: A care provider, this insurance is provided by the state. The basic pension insurance provides, in time old-age pension (includes regular, proportional, early and other variants of old-age pension), disability benefits, widower's and orphan's pension. Pension insurance is applied for at the District Social Security Administration in the applicant's place of permanent residence. They can apply in person or by proxy, on
575-502: A country. The Gini coefficient on disposable income—sometimes referred to as the after-tax Gini coefficient—is calculated on income after taxes and transfers. It measures inequality in income after considering the effect of taxes and social spending already in place in a country. For OECD countries over the 2008–2009 period, the Gini coefficient (pre-taxes and transfers) for a total population ranged between 0.34 and 0.53, with South Korea
690-453: A day in exchange for the service of thousands of physicians , teachers , sports trainers , and other skilled professionals. In February 2010 seven Cuban doctors who defected to the US introduced an indictment against the governments of Cuba and Venezuela and the oil company PDVSA for what they considered was a conspiracy to force them to work under conditions of "modern slaves" as payment for
805-498: A dozen variants of the Gini coefficient. The Gini coefficient was developed by the Italian statistician Corrado Gini and published in his 1912 paper Variabilità e mutabilità (English: variability and mutability ). Building on the work of American economist Max Lorenz , Gini proposed that the difference between the hypothetical straight line depicting perfect equality, and the actual line depicting people's incomes, be used as
920-528: A farming revolution where many sheep farms were broken up and sold to become smaller dairy farms. This enabled thousands of new farmers to buy land and develop a new and vigorous industry that has become the backbone of New Zealand's economy to this day. This liberal tradition flourished with increased enfranchisement for indigenous Māori in the 1880s and women. Pensions for the elderly, the poor and war casualties followed, with State-run schools, hospitals and subsidized medical and dental care. By 1960, New Zealand
1035-493: A geometrical interpretation between Gini's proposed ratio and the ratio between the area of observed concentration and maximum concentration. This altered version of Gini coefficient became the most commonly used inequality index in upcoming years. According to data from OECD , Gini coefficient was first officially used country-wide in Canada in the 1970s. Canadian index of income inequality ranged from 0.303 to 0.284 from 1976 to
1150-598: A measure of inequality. In this paper, he introduced the concept of simple mean difference as a measure of variability. He then applied the simple mean difference of observed variables to income and wealth inequality in his work On the measurement of concentration and variability of characters in 1914. Here, he presented the concentration ratio , which further developed in the Gini coefficient used today. Secondly, Gini observed that his proposed ratio can be also achieved by improving methods already introduced by Lorenz, Chatelain, or Séailles. In 1915, Gaetano Pietra introduced
1265-690: A multi-university study by the Andrés Bello Catholic University (UCAB), the Central University of Venezuela (UCV) and the Simon Bolivar University (USB), a comparison to the Venezuelan government's National Statistics Institute (INE) showed that overall poverty trends eventually reversed and increased between 1999 and 2015, rising from approximately 45% in 1999 to 48.4% in 2015 according to
SECTION 10
#17327718711791380-696: A poverty rate of 70% possible by the end of 2015. According to Venezuelan NGO PROVEA, by the end of 2015, there would be the same number of Venezuelans living in poverty as there was in 2000, reversing the advancements against poverty by Hugo Chávez. Social program Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance programs which provide support only to those who have previously contributed (e.g. pensions ), as opposed to social assistance programs which provide support on
1495-446: A proportion f of all income, then the Gini coefficient is f − u . A more graded distribution with these same values u and f will always have a higher Gini coefficient than f − u . For example, if the wealthiest u = 20% of the population has f = 80% of all income (see Pareto principle ), the income Gini coefficient is at least 60%. In another example, if u = 1% of the world's population owns f = 50% of all wealth,
1610-582: A range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. In Philippines, social welfare is mainly provided by the Department of Social Welfare and Development (DSWD). DSWD provides social welfare such as cash assistance (ayuda) and physical goods. The Pantawid Pamilyang Pilipino Program
1725-627: A range of social services and financial assistance to its citizens. The Estonian welfare state is a liberal welfare state, which means that it provides a minimal safety net for citizens in need and places a greater emphasis on individual responsibility and self-sufficiency. The Estonian welfare state provides a range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. The Estonian welfare state
1840-509: A significant effect on social protection policies. Prior to the 1980s, most Latin American countries focused on social insurance policies involving formal sector workers, assuming that the informal sector would disappear with economic development . The economic crisis of the 1980s and the liberalization of the labor market led to a growing informal sector and a rapid increase in poverty and inequality. Latin American countries did not have
1955-453: A so-called widow's / widower's pension. Provided to widowed individuals from the Czech pension system, its aim is to compensate households for losing income that they would in this situation be lacking. The widowed individual is entitled to a pension from a deceased person who has received an old-age or disability pension or has fulfilled the statutory condition on the required insurance period at
2070-564: A strong social security system to provide support to citizens in need. It also places a strong emphasis on promoting social cohesion and reducing income inequality, and it has a relatively high level of social spending compared to other countries. Solidarity is a strong value of the French Social Protection system. The first article of the French Code of Social Security describes the principle of solidarity. Solidarity
2185-651: A system known as the Nordic model . Esping-Andersen classified the most developed welfare state systems into three categories; Social Democratic, Conservative, and Liberal. A report published by the ILO in 2014 estimated only 27% of the world population has access to comprehensive social security. The World Bank 's 2019 World Development Report argues that the traditional payroll-based model of many kinds of social insurance are "increasingly challenged by working arrangements outside standard employment contracts". Welfare can take
2300-521: A variety of forms, such as monetary payments, subsidies and vouchers , or housing assistance. Welfare systems differ from country to country, but welfare is commonly provided to individuals who are unemployed , those with illness or disability , the elderly , those with dependent children, and veterans . Programs may have a variety of conditions for a person to receive welfare: Not all citizens use their social rights. Selective social rights have higher non-take-up rate than universal social rights due to
2415-399: Is a distinction between disability pension for individuals with first, second and third degree disability. The amount of the pension depends on the rate of decline of the person's ability to work, with the categories being divided between the first degree (a decrease of 35–49%), the second degree (a decrease of 50–69%), and the third degree (a decrease of 70% and above). Furthermore, there is
SECTION 20
#17327718711792530-647: Is commonly comprehended in relations of similar work, shared responsibility and common risks. Existing solidarities in France caused the expansion of health and social security. The welfare state has a long tradition in Germany dating to the Industrial Revolution . Due to the pressure of the workers' movement in the late 19th century, Reichskanzler Otto von Bismarck introduced the first rudimentary state social insurance scheme . Under Adolf Hitler ,
2645-513: Is equivalent to the definition based on the Lorenz curve . The mean absolute difference is the average absolute difference of all pairs of items of the population, and the relative mean absolute difference is the mean absolute difference divided by the average , x ¯ {\displaystyle {\bar {x}}} , to normalize for scale. If x i is the wealth or income of person i , and there are n persons, then
2760-430: Is from 0 (total equality) to 1 (absolute inequality). This measure is often rendered as a percentage, spanning 0 to 100. However, if negative values are factored in, as in cases of debt, the Gini index could exceed 1. Typically, we presuppose a positive mean or total, precluding a Gini coefficient below zero. An alternative approach is to define the Gini coefficient as half of the relative mean absolute difference , which
2875-409: Is funded through a mix of taxation and public spending, and it relies on a strong social security system to provide support to citizens in need. However, compared to other welfare states, it has relatively low levels of social spending and may rely more on private sector solutions to address social welfare issues. The Finnish Nordic model welfare state is based on the principles of social equality and
2990-428: Is intended for gainfully employed individuals who, in cases of short-term social events, are provided with health insurance benefits. These are provided through financial benefits. Sickness insurance participants are employees and self-employed individuals. Employees are compulsorily covered by sickness insurance, unlike the self-employed, whose sickness insurance is voluntary (and there is no penalisation for opting out of
3105-490: Is large, the income distribution may be represented by a continuous probability density function f ( x ) where f ( x ) dx is the fraction of the population with wealth or income in the interval dx about x . If F ( x ) is the cumulative distribution function for f ( x ): and L ( x ) is the Lorenz function: then the Lorenz curve L ( F ) may then be represented as a function parametric in L ( x ) and F ( x ) and
3220-413: Is now followed by (usually much lower) Arbeitslosengeld II (ALG II) or Sozialhilfe , which is independent of previous employment ( Hartz IV concept). As of 2022 , under ALG II, single adults receive up to €449 per month plus the cost of 'adequate' housing. ALG II can also be paid partially to employed persons to supplement a low work income. The Directive Principles of India , enshrined in part IV of
3335-544: Is often referred to instead of social security, encompassing a broader set of means, such as labour market intervention and local community-based programs, to alleviate poverty and provide security against things like unemployment. Prior to 1900 in Australia, charitable assistance from benevolent societies, sometimes with financial contributions from the authorities, was the primary means of relief for people not able to support themselves. The 1890s economic depression and
3450-751: Is one of the most well known social welfare programs by the DSWD where cash grants are given to parents and guardians in poverty to help their children continue schooling. This has assisted parents and guardians in poverty by helping them buy food and school supplies for their dependents. The Sustainable Livelihood Program (SLP) is also another social welfare program where the DSWD provides education, cash grants, or items such as vehicles and food stalls to individuals and communities to aid in their livelihoods. SLP grants are given to individuals such as street food vendors and organisations such as farmers cooperatives. DSWD also provides medical assistance for those who cannot afford
3565-487: Is outlined in a series of social policies , as is the tradition in Europe. Their goal is primarily preventing, but also mitigating social situations individuals may find themselves in through their lives. The social welfare is provided through social (including pension) insurance, sick insurance (not to be confused with health insurance ), public policy related to unemployment and low income benefits, which are financed through
Bolivarian missions - Misplaced Pages Continue
3680-415: Is part of social insurance, in addition to sickness insurance and serves as a contribution to the state employment policy. It is a premium for old age retirement, disability retirement or benefits in the event of the death of the primary provider in a household. Participation in pension insurance is mandatory for economically active individuals. For those on various forms of benefits, or currently registered as
3795-474: Is perfect income equality when everyone's income x j {\displaystyle x_{j}} equals the mean income x ¯ {\displaystyle {\overline {x}}} , so that r j = 1 {\displaystyle r_{j}=1} for everyone). Measures of inequality, then, are measures of the average deviations of the r j = 1 {\displaystyle r_{j}=1} from 1;
3910-575: Is the error function ( since G = 2 Φ ( σ 2 ) − 1 {\displaystyle G=2\Phi \left({\frac {\sigma }{\sqrt {2}}}\right)-1} , where Φ {\displaystyle \Phi } is the cumulative distribution function of a standard normal distribution). In the table below, some examples for probability density functions with support on [ 0 , ∞ ) {\displaystyle [0,\infty )} are shown. The Dirac delta distribution represents
4025-405: Is the fraction of the population with income or wealth y i > 0 {\displaystyle y_{i}>0} , the Gini coefficient is: where If the points with non-zero probabilities are indexed in increasing order ( y i < y i + 1 ) {\displaystyle (y_{i}<y_{i+1})} , then: where When the population
4140-399: Is the mean of the distribution, and the lower limits of integration may be replaced by zero when all incomes are positive. While the income distribution of any particular country will not correspond perfectly to the theoretical models , these models can provide a qualitative explanation of the income distribution in a nation given the Gini coefficient. The extreme cases are represented by
4255-476: Is therefore compulsory for all self-employed individuals, employees and employers operating in the Czech Republic and gets deducted from a salary in a similar manner to taxes. This insurance serves to finance unemployment support, disability benefits and covers a part of an employer's salary in cases of long-term illness that obstructs them from participating in the workforce. The sickness insurance system
4370-682: The Aadhaar system to distribute welfare measures in India. Some of the social programmes undertaken by the government are: As of 2023, the government's expenditure on social programme and welfare was approximately ₹ 21.3 lakh crore (US$ 260 billion), which was 8.3% of gross domestic product (GDP). In 2020, the expenditure was ₹ 17.1 lakh crore (equivalent to ₹ 20 trillion or US$ 240 billion in 2023), accounting for 7.7% of GDP. The Israeli government spend 86 billion NIS ($ 22.8 billion) in 2014. They are administered by
4485-628: The Attlee government (1944–1951). In the countries of western Europe, Australia, and New Zealand, social welfare is mainly provided by the government out of the national tax revenues , and to a lesser extent by non-government organizations (NGOs), and charities (social and religious). A right to social security and an adequate standard of living is asserted in Articles 22 and 25 of the Universal Declaration of Human Rights . In
4600-755: The Biblical Maaser Ani , or poor- tithe , as well as Biblical practices, such as permitting the poor to glean the corners of a field and harvest during the Shmita (Sabbatical year). There is relatively little statistical data on transfer payments before the High Middle Ages . In the medieval period and until the Industrial Revolution , the function of welfare payments in Europe was achieved through private giving or charity, through numerous confraternities and activities of different religious orders . Early welfare programs in Europe included
4715-530: The English Poor Law of 1601 , which gave parishes the responsibility for providing welfare payments to the poor. This system was substantially modified by the 19th-century Poor Law Amendment Act , which introduced the system of workhouses . It was predominantly in the late 19th and early 20th centuries that an organized system of state welfare provision was introduced in many countries. Otto von Bismarck , Chancellor of Germany, introduced one of
Bolivarian missions - Misplaced Pages Continue
4830-557: The Gini index or Gini ratio , is a measure of statistical dispersion intended to represent the income inequality , the wealth inequality , or the consumption inequality within a nation or a social group . It was developed by Italian statistician and sociologist Corrado Gini . The Gini coefficient measures the inequality among the values of a frequency distribution , such as levels of income . A Gini coefficient of 0 reflects perfect equality, where all income or wealth values are
4945-576: The Great Depression , most social services were provided by religious charities and other private groups. Changing government policy between the 1930s and 1960s saw the emergence of a welfare state, similar to many Western European countries. Most programs from that era are still in use, although many were scaled back during the 1990s as government priorities shifted towards reducing debt and deficits . Social welfare in Czech Republic
5060-703: The Indian Constitution , reflect that India is a welfare state. The National Food Security Act, 2013 aims to guarantee right to food to all citizens. The welfare system was fragmented until the passing of The Code on Social Security, 2020 , which standardised most of the programmes. The Government of India 's social programmes and welfare expenditures are a substantial portion of the official budget, and state and local governments play roles in developing and implementing social security policies. Additional welfare measure systems are also uniquely operated by various state governments. The government uses
5175-461: The Ministry of Social Affairs and Social Services , and by Israel's national social security agency, Bituah Leumi . Social security schemes include pensions for the elderly and the disabled, unemployment benefits, and income support for low income households. All residents of Israel must pay insurance contributions to qualify for welfare. The Italian welfare state's foundations were laid along
5290-586: The National Socialist Program stated "We demand an expansion on a large scale of old age welfare." Today, the social protection of all its citizens is considered a central pillar of German national policy. 27.6 percent of Germany's GDP is channeled into an all-embracing system of health, pension, accident , longterm care and unemployment insurance , compared to 16.2 percent in the US. In addition, there are tax-financed services such as child benefits ( Kindergeld , beginning at €192 per month for
5405-806: The Roman Empire , the first emperor Augustus provided the Cura Annonae or grain dole for citizens who could not afford to buy food every month. Social welfare was enlarged by the Emperor Trajan . Trajan's program brought acclaim from many, including Pliny the Younger . Other provisions for the poor were introduced during the history of Ancient Rome, such as the Alimenta . The Song dynasty government (960 CE) supported multiple programs which could be classified as social welfare, including
5520-512: The Umayyad and Abbasid caliphates, though the zakat system was frequently inefficient and corrupt; Islamic jurists often instructed Muslims to distribute money to the needy directly instead to maximize its impact. Likewise, in Jewish tradition, charity (represented by tzedakah ) is a matter of religious obligation rather than benevolence. Contemporary charity is regarded as a continuation of
5635-559: The World Health Organization and UNICEF . Barrio Adentro, however, has been criticized for poor working conditions of Cuban workers, funding irregularities, and an estimated 80% of Barrio Adentro establishments abandoned with some structures filled with trash or becoming unintentional shelters for the homeless. The infant mortality rate went down 5.9% between 1999 and 2013. The Gini coefficient fell from 47.8 in 1999 to 44.8 in 2006. The government earmarked 44.6% of
5750-408: The X k indexed in increasing order ( X k – 1 < X k ), so that: If the Lorenz curve is approximated on each interval as a line between consecutive points, then the area B can be approximated with trapezoids and: is the resulting approximation for G. More accurate results can be obtained using other methods to approximate the area B, such as approximating the Lorenz curve with
5865-613: The zakat policy of the seventh century (634 CE) Rashidun caliph Umar , as early examples of universal government welfare. The first welfare state was Imperial Germany (1871–1918), where the Bismarck government introduced social security in 1889. In the early 20th century, the United Kingdom introduced social security around 1913, and adopted the welfare state with the National Insurance Act 1946 , during
SECTION 50
#17327718711795980-460: The "revolutionary" approach which often caused inefficient improvisation would eventually jeopardize the sustainability of the missions. As a result of Chávez's policies, the durability of Bolivarian missions was put to the test shortly before and after Chávez's death, when poverty increased, inflation rose and widespread shortages in Venezuela occurred, with such effects growing especially into
6095-750: The 2007 budget for social investment, with 1999–2007 averaging 12.8% of GDP. During the Chávez's presidency, poverty fell from 49.4% in 1999 to 30.2% in 2006 and extreme poverty went down from 21.7% to 9.9% in the same period according to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). However, the ECLAC showed a nearly 7% jump in poverty in 2013, from 25.4% in 2012 increasing to 32.1% in 2013. In
6210-593: The American usage) and not to healthcare and education spending (as in the European usage). The Canadian social safety net covers a broad spectrum of programs, and because Canada is a federation , many are run by the provinces . Canada has a wide range of government transfer payments to individuals, which totaled $ 145 billion in 2006. Only social programs that direct funds to individuals are included in that cost; programs such as medicare and public education are additional costs. Generally speaking, before
6325-537: The Bolivarian missions, showing that only 10% of Venezuelans studied benefited from the missions. Of that 10%, almost half were not affected from poverty. According to El Universal , experts stated that the missions actually worsened economic conditions in the country. Mission Barrio Adentro, one of the flagship Bolivarian Missions of the widest social impact, drew praise from the Latin American branch of
6440-633: The Cuban government' debt. In 2014, it was reported by Miami NGO, Solidarity Without Borders , that at least 700 Cuban medical personnel had left Venezuela in the past year and that up to hundreds of Cuban personnel had asked for advice on how to escape from Venezuela weekly. Solidarity Without Borders also stated that Cuban personnel cannot refuse to work, cannot express complaints and suffer with blackmail from threats against their family in Cuba. The development and promotion of economic resources, originating from
6555-437: The Gini coefficient G is given by: When the income (or wealth) distribution is given as a continuous probability density function p ( x ), the Gini coefficient is again half of the relative mean absolute difference: where μ = ∫ − ∞ ∞ x p ( x ) d x {\displaystyle \textstyle \mu =\int _{-\infty }^{\infty }xp(x)\,dx}
6670-687: The Gini coefficient will be a function only of a, b, c... . For example, for the exponential distribution , which is a function of only x and a scale parameter, the Gini coefficient is a constant, equal to 1/2. For some functional forms, the Gini index can be calculated explicitly. For example, if y follows a log-normal distribution with the standard deviation of logs equal to σ {\displaystyle \sigma } , then G = erf ( σ 2 ) {\displaystyle G=\operatorname {erf} \left({\frac {\sigma }{2}}\right)} where erf {\displaystyle \operatorname {erf} }
6785-521: The Invalid and Old-Aged Pensions Act 1908. A national invalid disability pension was started in 1910, and a national maternity allowance was introduced in 1912. During the Second World War, Australia under a labor government created a welfare state by enacting national schemes for: child endowment in 1941 (superseding the 1927 New South Wales scheme); a widows' pension in 1942 (superseding
6900-579: The New South Wales 1926 scheme); a wife's allowance in 1943; additional allowances for the children of pensioners in 1943; and unemployment, sickness, and special benefits in 1945 (superseding the Queensland 1923 scheme). Canada has a welfare state in the European tradition; however, it is not referred to as "welfare", but rather as "social programs". In Canada, "welfare" usually refers specifically to direct payments to poor individuals (as in
7015-445: The basis of a notarized power of attorney. The amount of the pension consists of two component – the basic acreage and the percentage acreage. Another form of pension is the disability pension. This is provided to individuals that are unable to participate in the workforce to the same degree as their able-bodied counterparts, due to their disability contributing to the decline of their ability to work (be it partially or entirely). There
SECTION 60
#17327718711797130-419: The basis of need alone (e.g. most disability benefits). The International Labour Organization defines social security as covering support for those in old age , support for the maintenance of children , medical treatment , parental and sick leave , unemployment and disability benefits , and support for sufferers of occupational injury . More broadly, welfare may also encompass efforts to provide
7245-428: The belief that all citizens should have access to the same basic rights and opportunities. It provides a range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. The Finnish welfare state relies on
7360-401: The birth of a disabled child, when this period is extended even more. The beginning of maternity leave is usually 6 weeks before expected due date, and after maternity leave, it is possible to request further parental leave, which is optional and can be performed by either parent, regardless of gender. Parental leave lasts up to four years, depending on individual preferences. Pension insurance
7475-412: The case where everyone has the same wealth (or income); it implies no variations between incomes. Sometimes the entire Lorenz curve is not known, and only values at certain intervals are given. In that case, the Gini coefficient can be approximated using various techniques for interpolating the missing values of the Lorenz curve. If ( X k , Y k ) are the known points on the Lorenz curve, with
7590-499: The collection and distribution of public welfare. The seventh century caliph Umar implemented a form of zakat , one of the Five Pillars of Islam , as a codified universal social security tax. Traditionally estimated at 2.5% of an individual's assets, government zakat funds were distributed to various groups of Muslims, including impoverished people and those in severe debt. The collection of zakat increased during
7705-524: The complexity of the information and the Bureaucracy. Sometimes people need the help of other people to mediate their rights. In developing countries, formal social security arrangements are often absent for the vast majority of the working population, in part due to reliance on the informal economy . Additionally, the state's capacity to reach people may be limited because of its limited infrastructure and resources. In this context, social protection
7820-568: The date of death. The amount of the assessment is 10% of the average wage and the amount of the percentage assessment is 50% of the percentage of the old-age or disability pension to which the deceased was entitled at the time of their death. Danish welfare is handled by the state through a series of policies (and the like) that seeks to provide welfare services to citizens, hence the term welfare state. This refers not only to social benefits, but also tax-funded education, public child care, medical care, etc. A number of these services are not provided by
7935-412: The distance of the inequality ratios (the r j ) from 1. Gini coefficients of income are calculated on a market income and a disposable income basis. The Gini coefficient on market income—sometimes referred to as a pre-tax Gini coefficient—is calculated on income before taxes and transfers. It measures inequality in income without considering the effect of taxes and social spending already in place in
8050-496: The distribution of income/wealth, used to estimate how far a country's wealth or income distribution deviates from an equal distribution. The Gini coefficient is usually defined mathematically based on the Lorenz curve , which plots the proportion of the total income of the population (y-axis) that is cumulatively earned by the bottom x of the population (see diagram). The line at 45 degrees thus represents perfect equality of incomes. The Gini coefficient can then be thought of as
8165-509: The early 2000s and funds not seen in Venezuela since the 1980s, Chávez created the "Bolivarian missions" in 2003, which were initially short-term projects dedicated to alleviating the largest socioeconomic problems facing Venezuela at the time. After enjoying political success, Chávez made the missions his central priority for his administration, directly overseeing their operations and increasing funding during electoral campaigns. The development and promotion of economic resources, originating from
8280-423: The end of 1980s. OECD started to publish more countries’ data since the start of the 21st century. Central European countries Slovenia , Czechia , and Slovakia have had the lowest inequality index out of all OECD countries ever since the 2000s. Scandinavian countries also frequently appeared at the top of the list of equality in the last decades. The Gini coefficient is an index for the degree of inequality in
8395-451: The error distributions and the independence of error terms. These assumptions are often not valid for real data sets. There is still ongoing debate surrounding this topic. Guillermina Jasso and Angus Deaton independently proposed the following formula for the Gini coefficient: where μ {\displaystyle \mu } is mean income of the population, P i is the income rank P of person i, with income X, such that
8510-401: The estimate of A can be used to derive the estimate of G directly without using a jackknife. This method only requires using ordinary least squares regression after ordering the sample data. The results compare favorably with the estimates from the jackknife with agreement improving with increasing sample size. However, it has been argued that this depends on the model's assumptions about
8625-422: The extreme inequality levels and the mass scale of poverty; locating a financial basis for programs; and deciding on exit strategies or on the long-term establishment of programs. The economic crisis of the 1980s led to a shift in social policies, as understandings of poverty and social programs evolved (24). New, mostly short-term programs emerged. These include: New Zealand is often regarded as having one of
8740-472: The fight against poverty." On the other hand, the Chávez government overspent on social spending without saving enough for economic distress, which Venezuela experienced shortly before and after Hugo Chávez's death and during the economic policy of the Nicolás Maduro government . Poverty, inflation and shortages then began to increase. A multi-university study in 2015 questioned the effectiveness of
8855-425: The first and second child, €198 for the third and €223 for each child thereafter, until they attain 25 years or receive their first professional qualification), and basic provisions for those unable to work or anyone with an income below the poverty line. Since 2005, reception of full unemployment pay (60–67% of the previous net salary) has been restricted to 12 months in general and 18 months for those over 55. This
8970-403: The first comprehensive welfare systems in the world. During the 1890s, a Liberal government adopted many social programmes to help the poor who had suffered from a long economic depression in the 1880s. One of the most far reaching was the passing of tax legislation that made it difficult for wealthy sheep farmers to hold onto their large land holdings. This and the invention of refrigeration led to
9085-598: The first welfare systems for the working classes. In Great Britain the Liberal government of Henry Campbell-Bannerman and David Lloyd George introduced the National Insurance system in 1911, a system later expanded by Clement Attlee . Modern welfare states include Germany, France, the Netherlands, as well as the Nordic countries , such as Iceland, Sweden, Norway, Denmark, and Finland which employ
9200-525: The global income in 2005 has been estimated to be between 0.61 and 0.68 by various sources. There are some issues in interpreting a Gini coefficient, as the same value may result from many different distribution curves. To mitigate this, the demographic structure should be taken into account. Countries with an aging population, or those with an increased birth rate, experience an increasing pre-tax Gini coefficient even if real income distribution for working adults remains constant. Many scholars have devised over
9315-493: The government budget, and health insurance, which is financed through an array of insurance companies. Therefore, the social welfare program is usually separated into three categories: health insurance, social insurance and social benefits support. Social insurance is a type of statutory insurance that provides citizens for a future unforeseen social event, such as unemployment or disability that would prevent an individual from working, but also planned retirement. Social insurance
9430-435: The greater the average deviation, the greater the inequality. Based on these observations the inequality indices have this common form: where p j weights the units by their population share, and f ( r j ) is a function of the deviation of each unit's r j from 1, the point of equality. The insight of this generalized inequality index is that inequality indices differ because they employ different functions of
9545-462: The ill or otherwise disabled and for the old, has long been provided in Japan by both the government and private companies. Beginning in the 1920s, the government enacted a series of welfare programs, based mainly on European models, to provide medical care and financial support. During the postwar period, a comprehensive system of social security was gradually established. The 1980s marked a change in
9660-598: The institutions and funds to properly handle such a crisis, both due to the structure of the social security system, and to the previously implemented structural adjustment policies (SAPs) that had decreased the size of the state. New Welfare programs have integrated the multidimensional, social risk management , and capabilities approaches into poverty alleviation. They focus on income transfers and service provisions while aiming to alleviate both long- and short-term poverty through, among other things, education, health, security, and housing. Unlike previous programs that targeted
9775-467: The insurance). It is calculated through a series of reductions of an assessment base. Employees' sickness insurance provides 4 types of sickness benefits: benefits for caring for a family member, pregnancy and maternity allowance, maternity allowance. It is standard to go on paid maternity leave in the Czech Republic, which ordinarily lasts 28 weeks. This period is prolonged to 37 weeks in the case of twins. Furthermore, there are special circumstances, such as
9890-436: The integration is taken from minus infinity to plus infinity.) The Gini coefficient may be expressed in terms of the quantile function Q ( F ) (inverse of the cumulative distribution function: Q(F(x)) = x) Since the Gini coefficient is independent of scale , if the distribution function can be expressed in the form f(x,φ,a,b,c...) where φ is a scale factor and a, b, c... are dimensionless parameters, then
10005-472: The lines of the corporatist -conservative model, or of its Mediterranean variant. Later, in the 1960s and 1970s, increases in public spending and a major focus on universality brought it on the same path as social-democratic systems. In 1978, a universalistic welfare model was introduced in Italy, offering a number of universal and free services such as a National Health Fund. Social welfare, assistance for
10120-430: The lowest and Mexico the highest. African countries had the highest pre-tax Gini coefficients in 2008–2009, with South Africa having the world's highest, estimated to be 0.63 to 0.7. However, this figure drops to 0.52 after social assistance is taken into account, and drops again to 0.47 after taxation. The country with the lowest Gini coefficient is Slovakia, with a Gini coefficient of 0.232. The Gini coefficient of
10235-524: The lowest and Italy the highest. The Gini coefficient (after-taxes and transfers) for a total population ranged between 0.25 and 0.48, with Denmark the lowest and Mexico the highest. For the United States, the country with the largest population among OECD countries, the pre-tax Gini index was 0.49, and the after-tax Gini index was 0.38 in 2008–2009. The OECD average for total populations in OECD countries
10350-406: The most equal possible society in which every person receives the same income ( G = 0 ), and the most unequal society (with N individuals) where a single person receives 100% of the total income and the remaining N − 1 people receive none ( G = 1 − 1/ N ). A simple case assumes just two levels of income, low and high. If the high income group is a proportion u of the population and earns
10465-469: The need to divide by N² instead. FAO explains another version of the formula. The Gini coefficient and other standard inequality indices reduce to a common form. Perfect equality—the absence of inequality—exists when and only when the inequality ratio, r j = x j / x ¯ {\displaystyle r_{j}=x_{j}/{\overline {x}}} , equals 1 for all j units in some population (for example, there
10580-555: The out-of-pocket cost of hospitalisation as Philhealth's coverage usually does not cover the full expense. Other government agencies and companies also provide social welfare such as the Philippine Charity Sweepstakes Office , Department of Health , and offices of house representatives in their respective congressional districts. Gini coefficient In economics , the Gini coefficient ( / ˈ dʒ iː n i / JEE -nee ), also known as
10695-536: The poor and slaves. From the 14th century onward, the governments of the Italian city-states began to partner with the church to provide welfare and education to the lower classes. In the 18th Century, according to one study, the Qing Dynasty had “the most elaborate relief system in world history, based on state and local granaries that were used in times of shortage to stabilize food prices and provide relief to
10810-432: The population Gini coefficient, should be reported. These can be calculated using bootstrap techniques, mathematically complicated and computationally demanding even in an era of fast computers. Economist Tomson Ogwang made the process more efficient by setting up a "trick regression model" in which respective income variables in the sample are ranked, with the lowest income being allocated rank 1. The model then expresses
10925-488: The presidency of Nicolas Maduro . In 2014, Venezuela entered an economic recession . Estimates of poverty by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and Luis Pedro España, a sociologist at the Universidad Católica Andrés Bello , show an increase in poverty. ECLAC showed a 2013 poverty rate of 32% while Pedro España calculated a 2015 rate of 48% with
11040-408: The rank (dependent variable) as the sum of a constant A and a normal error term whose variance is inversely proportional to y k : Thus, G can be expressed as a function of the weighted least squares estimate of the constant A and that this can be used to speed up the calculation of the jackknife estimate for the standard error. Economist David Giles argued that the standard error of
11155-428: The ratio of the area that lies between the line of equality and the Lorenz curve (marked A in the diagram) over the total area under the line of equality (marked A and B in the diagram); i.e., G = A /( A + B ) . If there are no negative incomes, it is also equal to 2 A and 1 − 2 B due to the fact that A + B = 0.5 . Assuming non-negative income or wealth for all, the Gini coefficient's theoretical range
11270-549: The richest person receives a rank of 1 and the poorest a rank of N . This effectively gives higher weight to poorer people in the income distribution, which allows the Gini to meet the Transfer Principle . Note that the Jasso-Deaton formula rescales the coefficient so that its value is one if all the X i {\displaystyle X_{i}} are zero except one. Note however Allison's reply on
11385-523: The rise of the trade unions and the Labor parties during this period led to a movement for welfare reform. In 1900, the states of New South Wales and Victoria enacted legislation introducing non-contributory pensions for those aged 65 and over. Queensland legislated a similar system in 1907 before the Australian labor Commonwealth government led by Andrew Fisher introduced a national aged pension under
11500-471: The same, while a Gini coefficient of 1 (or 100%) reflects maximal inequality among values, a situation where a single individual has all the income while all others have none. The Gini coefficient was proposed by Corrado Gini as a measure of inequality of income or wealth . For OECD countries in the late 20th century, considering the effect of taxes and transfer payments , the income Gini coefficient ranged between 0.24 and 0.49, with Slovakia being
11615-604: The sample Gini coefficient is a consistent estimator of the population Gini coefficient, but is not in general unbiased . In simplified form: There does not exist a sample statistic that is always an unbiased estimator of the population Gini coefficient. For a discrete probability distribution with probability mass function f ( y i ) , {\displaystyle f(y_{i}),} i = 1 , … , n {\displaystyle i=1,\ldots ,n} , where f ( y i ) {\displaystyle f(y_{i})}
11730-411: The state directly, but administered by municipalities, regions or private providers through outsourcing. This sometimes gives a source of tension between the state and municipalities, as there is not always consistency between the promises of welfare provided by the state (i.e. parliament) and local perception of what it would cost to fulfill these promises. Estonia does have a welfare state that provides
11845-466: The state hospitals, low-interest loans for peasants, state orphanages, free pharmacies for the poor, filled state granaries, fire stations and libraries in the large cities, retirement homes, public clinics, and paupers' graveyards. According to economist Robert Henry Nelson , "the medieval Roman Catholic Church operated a far-reaching and comprehensive welfare system for the poor ...". Ancient Greek city-states provided free medical services for
11960-473: The state-owned Petróleos de Venezuela (PDVSA), generated a political floor for the governmental management of that time, but that "as the years went by, many social missions lost their social perspective and focused their axis of action on political activities" characterized by discretionality and information opacity. Many of these programs involve importing expertise from abroad; Venezuela is providing Cuba with 53,000 barrels (8,000 m) of below-market-rate oil
12075-515: The state-owned Petróleos de Venezuela (PDVSA), generated a political floor for the governmental management of that time, but that "as the years went by, many social missions lost their social perspective and focused their axis of action on political activities" characterized by discretionality and information opacity. The Bolivarian missions have been praised for their effect on poverty, education and health, and are described as "ways to combat extreme forms of exclusion" and "the mainstay of progress in
12190-405: The structure of Latin American social protection programs. Social protection embraces three major areas: social insurance, financed by workers and employers; social assistance to the population's poorest, financed by the state; and labor market regulations to protect worker rights. Although diverse, recent Latin American social policy has tended to concentrate on social assistance. The 1980s, had
12305-586: The study performed by universities. Months later, the same universities found that 73% of Venezuelan households lived in poverty, with poverty increasing over 24% in about one year. From the beginning of the Bolivarian missions and past Chávez's death , the sustainability of the missions was questioned. The Bolivarian government's over dependence on oil funds for large populist policies led to overspending on social programs and strict government policies created difficulties for Venezuela's import reliant businesses. Foreign Policy described Chávez's Venezuela as "one of
12420-687: The urban and rural poor.” This system, however, was weakened after imperialism entered China following the 1840 Opium War and the Taiping Rebellion (1850-1860), which resulted in a crisis in the Qing Dynasty. Following the foundation of the Republic in 1912 and the following years of civil wars and warlordism, “the state granary system became almost non-existent.” Throughout the history of the Byzantine Empire, various social welfare services and institutions were established. Provision
12535-445: The value of B can be found by integration : The Gini coefficient can also be calculated directly from the cumulative distribution function of the distribution F ( y ). Defining μ as the mean of the distribution, and specifying that F ( y ) is zero for all negative values, the Gini coefficient is given by: The latter result comes from integration by parts . (Note that this formula can be applied when there are negative values if
12650-572: The wealth Gini coefficient is at least 49%. In some cases, this equation can be applied to calculate the Gini coefficient without direct reference to the Lorenz curve . For example, (taking y to indicate the income or wealth of a person or household): The Gini coefficient can also be considered as half the relative mean absolute difference . For a random sample S with values y 1 ≤ y 2 ≤ ⋯ ≤ y n {\displaystyle y_{1}\leq y_{2}\leq \cdots \leq y_{n}} ,
12765-428: The working class, new programs have successfully focused on locating and targeting the very poorest. The impacts of social assistance programs vary between countries, and many programs have yet to be fully evaluated. According to Barrientos and Santibanez, the programs have been more successful in increasing investment in human capital than in bringing households above the poverty line. Challenges still exist, including
12880-594: The worst cases of the Dutch disease in the world" due to the Bolivarian government's large dependence on oil sales and its lavish spending to please voters . Focus on the missions was increased during political campaigns in Venezuela, with Chávez often overspending to fund their popularity. Following elections, government interest in the missions would then decline and their effectiveness would be negatively affected. The lack of institutional organization–many missions had existing government services that only increased costs–and
12995-524: Was 0.46 for the pre-tax income Gini index and 0.31 for the after-tax income Gini index. Taxes and social spending that were in place in 2008–2009 period in OECD countries significantly lowered effective income inequality, and in general, "European countries—especially Nordic and Continental welfare states —achieve lower levels of income inequality than other countries." Using the Gini can help quantify differences in welfare and compensation policies and philosophies. However, it should be borne in mind that
13110-479: Was able to afford one of the best-developed and most comprehensive welfare systems in the world, supported by a well-developed and stable economy. Norway has a strong welfare state that provides a range of social services and financial assistance to its citizens. The Norwegian welfare state is based on the principles of social democracy, which means that it has a strong focus on reducing income inequality and promoting social cohesion. The Norwegian welfare state provides
13225-611: Was also made for the State to provide food and clothing for children that parents were unable to bring up due to indigence. In later Protestant European nations such as the Dutch Republic , welfare was managed by local guilds until the abolition of the guild system in the early 19th century. In the free imperial cities of the Holy Roman Empire , the city governments in cities like Nuremberg could take control of
#178821