Question

The table below shows the share of income going to each quintile of the income distribution for Sweden in 2015 and 2004 (Data from the World Bank).  Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve.  Clearly provide the data points for your Lorenz curves in a table. How did inequality in Sweden shift over this time period?  How can you see the patterns in the quintiles in the Lorenz curve?

Share of Income	2015	2004
Top Quintile	37.6%	35.5%
Fourth Quintile	22.8%	22.9%
Middle Quintile	17.6%	17.9%
Second Quintile	13.8%	14.4%
Bottom Quintile	8.2%	9.3%

Answer 1

Quintile	2015	CF of 2015	2004	CF of 2004
Top	37.6	100	35.5	100
Fourth	22.8	72.4	22.9	64.5
Middle	17.6	39.6	17.9	41.6
second	13.8	22	14.4	23.7
bottom	8.2	8.2	9.3	9.3

The dotted line if for 2015 and non dotted is for 2004.

Income equality was high for 2015 until 3rd quintile which means that 60% of the population got their income decreased which 40% of the population got it increased in a span of 11 years.