Line of equality
Definition. The line of equality is the 45 degree diagonal on a Lorenz curve diagram that represents a perfectly equal distribution of income, where each percentage of the population receives exactly the same percentage of total income. The actual Lorenz curve is compared against this line.
The further the Lorenz curve bows away from the line of equality, the greater the income inequality. The Gini coefficient measures this gap, taking a value of zero when the curve lies on the line.
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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