Abstract
Poverty is an important issue that needs to be addressed by all countries. Poverty is related to a group of people earning a low income (lower-tail of the income distribution). In Malaysia, low-income earners are classified as the B40 group. This study aims to describe the behavior of the low-income distribution using the power law model. For this purpose, an inverse Pareto model was applied for describing the lower tail data of Malaysian household income. A robust and efficient estimator, called the probability integral transform statistic estimator, was utilized for estimating the shape parameter of the inverse Pareto distribution. Based on the fitted inverse Pareto model, not all households in the B40 group complied with the power law behavior. However, the power law was able to provide a good description for the group of B40 that was below the poverty line. Based on the inverse Pareto model, the parametric Lorenz curve and the Gini index were derived to provide a robust measure of the income inequality of poor households in Malaysia.
Highlights
Behavior of the low-income distribution using the power Malaysian income distribution is very different than other law model
For a factor of the ethnic for B40 group, the data shows that the non-native citizen has a large mean and median income compared to the native citizen
For the B40 group, the inverse Pareto model failed to describe the distribution of its income data
Summary
Behavior of the low-income distribution using the power Malaysian income distribution is very different than other law model. For this purpose, an inverse Pareto model was developing countries such as Vietnam and Chile. Based on the fitted inverse Pareto Alesina and Glaeser (2004), homogeneous populations model, not all households in the B40 group complied with without different groups of ethnicity tend to have more fair the power law behavior. Based on the inverse Pareto model, ethnicity is less serious than a country with a variety of the parametric Lorenz curve and the Gini index were ethnicities This implies that income inequalities are a derived to provide a robust measure of the income major concern, especially for multi-racial countries like inequality of poor households in Malaysia. Besides the poor (below PLI), the cause a person to be discriminated against among their B40 group is considered and assisted by the Malaysia community, lose their sense of belonging to the community government
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
