The distribution of income and wealth can be measured in two ways:
- Lorenz Curve which plots percentiles of the population on the horizontal axis according to their share of total income or wealth
- Gini coefficient which is a coefficient from 0 to 1 that measures statistical dispersion of income or wealth. The higher the Gini coefficient, the more inequality there is.
Watch the video to learn more about the Lorenz Curve and Gini coefficient as measures of the distribution of income and wealth in HSC Economics: