Income Inequality

Income inequality measures differences in household income and how it is distributed through a given sample, be that an economy, a region, or the world. Income inequality often determines an individual’s quality of life, including their access to housing, education, diet, health and life expectancy. On a global basis, income inequality is significant and has been rising in recent years. In economics, income inequality is measured by a series of ratios, for example comparing average incomes of the 20% richest people in a sample with the 20% poorest.