Okuzeka
Economics vocabulary · Development and Inequality

Inequality

Meaning in economics, with examples

/ˌɪnɪˈkwɒləti/nounCore term

In economics, inequality means: The unequal distribution of income, wealth or opportunities between people or groups in a society, or between countries.

In Turkish: eşitsizlik, gelir eşitsizliği

How it is used

Economists separate income inequality (what people earn) from wealth inequality (what they own). Inequality rises, widens or narrows, and taxes and transfers can reduce it. It is commonly measured with the Gini coefficient or the income share of the top 10%.

Example sentences

  1. Income inequality has widened as the pay of top earners grew faster than average wages.

  2. Regional inequality between the east and the west of the country remains large.

Common collocations

  • income inequality
  • wealth inequality
  • rising inequality
  • reduce inequality
  • regional inequality
  • 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.
  • poverty lineThe minimum level of income considered necessary to meet basic needs in a country; people living below it are counted as poor.
  • per capitaFor each person in a population; a total divided by the number of people, as in GDP per capita or income per capita.
  • taxationThe system by which a government collects money from people and businesses through taxes on income, profits, spending and property.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Development and Inequality

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