Income & Inequality
Income distribution, the Gini coefficient, poverty, and redistribution policy.
14 articles
FeaturedGini Coefficient: The Number That Measures Inequality
The Gini coefficient is a single number summarizing the inequality of an income distribution. It ranges from 0 (perfect equality) to 1 (perfect inequality).
Read more →Deep Dives
5 articles
How Income Is Distributed in the United States: A Data-Led Look
The top fifth of U.S. households takes about half of all income; the bottom fifth gets roughly 3%. What the Census data shows, and what it leaves out.
The Gini Coefficient and the Lorenz Curve: Measuring Inequality in a Single Number
The Gini coefficient compresses a whole income distribution into one number between 0 and 1. Here's what it measures, how to compute it, and where it misleads.
What Drives Income Inequality? The Economics Behind the Gap
The top 1% earned 12.4% of all U.S. wages in 2023, up from 7.3% in 1979. Here are the five forces actually driving the gap — led by the data.
How Poverty Is Measured — and Why the Method Matters
The U.S. official poverty line was built from a 1963 food-budget formula. Here are the real questions people ask about how poverty is defined, measured, and…
Should the Government Redistribute Income? The Economics of Taxes, Transfers, and Trade-Offs
The case for redistribution is real — so are the costs. Here is what the economics actually says about progressive taxes, transfers, the EITC, and the…
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8 termsSocial Mobility: The Ability to Move Up (or Down) the Economic Ladder
Social mobility measures how much a person's economic position can differ from their parents' — whether birth circumstances determine destiny.
Read more →Lorenz Curve: Visualizing Income Inequality
The Lorenz curve plots the cumulative share of income held by cumulative income percentiles.
Read more →Poverty Line: Defining the Threshold Between Poor and Not Poor
The poverty line is the income threshold below which a household is classified as poor. The U.S.
Read more →Income Distribution: How a Country's Income Is Divided
Income distribution describes how total national income is divided among households and individuals.
Read more →Transfer Payment: Income Without a Corresponding Production Requirement
A transfer payment is a government payment to an individual not in exchange for a good or service.
Read more →Progressive vs. Regressive Tax: How the Burden Changes With Income
A progressive tax takes a larger percentage of income from higher earners; a regressive tax takes a larger percentage from lower earners.
Read more →Equity vs. Efficiency: Two Goals That Often Conflict
Economic equity is the fairness or justice of economic outcomes and processes. Efficiency maximizes total value; equity addresses its distribution.
↔ Also in Government InterventionRead more →Means-Tested Programs: Targeting Benefits to Those Who Need Them Most
Means-tested programs provide benefits only to individuals or households below an income or asset threshold.
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