Income inequality.
- Income is the flow of money received each year. It
can include: a salary, renting out a property,
interest earned on cash in the bank, benefit
payments, dividends from shares etc.
- Perfect income inequality is when every worker is
paid the same amount, regardless of their role.
- Income inequality occurs when the best paid workers
take home more income than the rest of a country’s
workers. For example, the average American CEO was
paid around 271 times more than the average worker in
2017.
Understanding the Lorenz curve.
- The lorenz curve demonstrates the cumulative income
of a population.