Key Concepts

• • The line of equality (dashed) represents perfect equal distribution
• • The Lorenz curve shows actual cumulative income share vs population share
• • Gini coefficient = shaded area / total triangle area (above equality line)
• • A Gini of 0.4 is typical for many countries; Scandinavian countries reach ~0.25
• • Governments use taxes, transfers, and social spending to reduce the Gini coefficient