Income Inequality

Definition

Income inequality refers to the unequal distribution of income among individuals or households in a society. It means that some people earn significantly more money than others.

Related terms

Poverty: Poverty refers to the state of being extremely poor and lacking basic necessities due to low income.

Wealth Gap: The wealth gap is the difference in assets and net worth between the richest and poorest members of society.

Gini Coefficient: The Gini coefficient is a measure used to quantify income inequality within a country or region. It ranges from 0 (perfect equality) to 1 (maximum inequality).