Income Distribution

Income distribution refers to how wealth is divided among individuals and groups within a society. It’s a measure of economic inequality, showing how evenly or unevenly resources are spread.

There are two main types of income distribution:

• Functional distribution: This looks at how income is divided among different factors of production, like labor, capital, and land.
• Personal distribution: This focuses on how income is divided among individuals or households.

Income distribution can be measured using various metrics, such as the Gini coefficient or the Lorenz curve. These tools help visualize and quantify the level of inequality in a society.