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Home›The Economy›Global & Applied›Income & Inequality
◆ GLOBAL & APPLIED

Income & Inequality

Income distribution, the Gini coefficient, poverty, and redistribution policy.

14 articles

Featured

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.

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Deep Dives

5 articles
◆ INCOME & INEQUALITY

How Income Is Distributed in the United States

The top fifth of U.S. households takes about half of all income; the bottom fifth gets roughly 3%. What Census data shows, and what it leaves out.

7 min read·June 3, 2026
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◆ INCOME & INEQUALITY

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.

7 min read·June 5, 2026
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◆ INCOME & INEQUALITY

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.

9 min read·June 6, 2026
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◆ INCOME & INEQUALITY

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…

9 min read·June 7, 2026
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◆ INCOME & INEQUALITY

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…

8 min read·June 8, 2026
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◆ THE BROADSHEETThe terms behind the headlines, and where to read next.

Key terms

  • Transfer Payment: Income Without a Corresponding Production RequirementA transfer payment is a government payment to an individual not in exchange for a good or service.
  • Income Distribution: How a Country's Income Is DividedIncome distribution describes how total national income is divided among households and individuals.
  • Gini Coefficient: The Number That Measures InequalityThe Gini coefficient turns a whole country's income into one number between 0 and 1. Here is what it measures, how to work one out by hand, and what it quietly hides.
  • Progressive vs. Regressive Tax: How the Burden Changes With IncomeA progressive tax takes a larger percentage of income from higher earners; a regressive tax takes a larger percentage from lower earners.
  • Means-Tested Programs: Targeting Benefits to Those Who Need Them MostMeans-tested programs provide benefits only to individuals or households below an income or asset threshold.
  • Lorenz Curve: Visualizing Income InequalityThe Lorenz curve plots the cumulative share of income held by cumulative income percentiles.
  • Equity vs. Efficiency: Two Goals That Often ConflictEconomic equity is the fairness or justice of economic outcomes and processes. Efficiency maximizes total value; equity addresses its distribution.
  • Social Mobility: The Ability to Move Up (or Down) the Economic LadderSocial mobility measures how much a person's economic position can differ from their parents' — whether birth circumstances determine destiny.

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  • Applied Economics10
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