11.4.2—Income distribution

Income distribution is the pattern of income shares across households, individuals or groups. It can be described with percentiles, the Lorenz curve, the Gini coefficient or other measures.

Average income can rise while distribution becomes more unequal. Interpret the measure’s population, income definition, taxes and transfers, and time period before comparing economies.

If the richest 20% receive a larger share while median income is unchanged, inequality has risen even though mean income may be higher.

Inequality is not the same as poverty, and a Gini number without its definition and direction is not meaningful.