Income Inequality

Definition

Income inequality refers to the uneven distribution of income within a population. The rich earn a disproportionately larger share of the total income compared to the poor.

Related terms

Wealth Distribution: This is how wealth is divided among individuals in a society. It's closely related to income inequality but focuses more on assets than income.

Poverty Line: This is an economic measure that determines if an individual or family can afford basic necessities such as food, shelter and clothing.

Gini Coefficient: A statistical measure used globally to gauge economic inequality; it ranges from 0 (perfect equality) to 1 (maximum inequality).