Income inequality
Definition. Income inequality is the unequal distribution of income across individuals or households within an economy, so that some receive a larger share of total income than others. It is a key concern for equity and is commonly measured using the Lorenz curve and the Gini coefficient.
Causes include differences in skills, education, ownership of capital, and market conditions, and it is often addressed through progressive taxation and transfer payments.
This term belongs to The Gini Coefficient in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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