Term of the Day | Words to Know

Income Inequality

Income inequality is how unevenly income is distributed throughout a population. The less equal the distribution, the higher income inequality is. Income inequality is often accompanied by wealth inequality, which is the uneven distribution of wealth. Populations can be divided up in different ways to show different levels and forms of income inequality such as income inequality by sex or race. Different measures, such as the Gini coefficient, can be used to analyze the level of income inequality in a population.

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