The name is absent

Cum. Dist. of eqinc_m/_N
Cum. Pop. Prop.

Cum. Dist. of mchpay/_N

Population Share, p_i

Lorenz and Concentration Curves

Figure 3. Lorenz and concentration curves for child benefits.

Let us finally show how TIP curves can be constructed. Suppose we wish to make poverty comparisons among two population
subgroups, households who own their house (solid lines below) and households who rent their house (dashed lines below). We
set the poverty line at 200 monetary units. To draw the TIP curves of absolute poverty gaps, simply type

. generate tip = (200 - eqinc)*(eqinc<=200)

. glcurve tip , gl(tip) p(tipp) sort(eqinc) by(owner) split

> xlabel(0,0.25,0.50,0.75,1) ylabel

tip[Tenant]                         ∙ tip[Owner]

I
I

0                  .25                 .5                 .75                  1

Population Share, p_i
Three I's of Poverty Curves

Figure 4. TIP curves of absolute poverty gaps for home owners and renters.

Imagine now that we consider setting a lower poverty line for households that own their houses, e.g., 170 monetary units.
We want to construct TIP curves of relative poverty gaps:

. generate tiprel = (1 - (eqinc/200))*(eqinc<=200) if owner==0

. replace tiprel = (1 - (eqinc∕170))*(eqinc<=170) if owner==l

. glcurve tiprel , gl(tipr) p(tipp) replace sort(eqinc) by(owner)

> split xlabel(0,0.25,0.50,0.75,1) ylabel

(Graph on next page)

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