Okuzeka
Economics vocabulary · Development and Inequality

Income distribution

Meaning in economics, with examples

nounCommon term

In economics, income distribution means: How a country's total income is shared out among its people or households, from the poorest to the richest.

In Turkish: gelir dağılımı

How it is used

Often described by splitting the population into five groups (quintiles) or ten groups (deciles) and comparing their shares of income, or by a single number such as the Gini coefficient. Debates focus on whether income distribution is becoming more or less equal.

Example sentences

  1. According to the latest income distribution data, the richest 20% receive almost half of total income.

  2. Taxes and social transfers can make income distribution more equal.

Common collocations

  • unequal income distribution
  • income distribution statistics
  • top income decile
  • bottom quintile
  • inequalityThe unequal distribution of income, wealth or opportunities between people or groups in a society, or between countries.
  • Gini coefficientA number from 0 to 1 that sums up income inequality in a country: 0 means everyone has the same income, and 1 means one person has all of it.
  • redistributionThe transfer of income or wealth from some groups to others, mainly from richer to poorer people, through taxes, benefits and public services.
  • progressive taxA tax that takes a larger share of income from people who earn more, usually through higher rates on higher income brackets.
  • householdAll the people who live together in one home and share its income and spending; in economic models, households buy goods and services and supply labour.

More terms: Development and Inequality

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This page explains English vocabulary for learners. It is not financial advice.