The Lorenz curve, or an accumulative line graph, is a tool in economics where wealth distribution is compared using low to high incomes and share of income earned as variables. This basically translates to understanding how much unequal wealth distribution actually impacts incomes. No one can rise above the line of perfect equality (the straight diagonal line) and in actuality, everyone falls upon the curve (the “Lorenz curve”) in the graph. This example of the Lorenz Curve shows how people who are in a low percentile of the country make far more money than they normally would if they were on the perfect equality line.
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