What is inequality?

Inequality is defined as the differences that exist between different 'groups' in an economy, and within these identified groups.

While inequality can be measured between and within any identifiable demographic group, typically, economists look at differences between as age, occupation, gender, and race.

There are different ways to look at inequality, including inequality of opportunity, and inequality of outcome.

In terms of inequality of outcome, the distribution of income and wealth are perhaps the commonest measured metrics.

Is inequality inevitable?

The distribution of income and wealth is unequal in all economies. This is highlighted by looking at the GINI co-efficient or index for global economies, and can be understood by analysing the Lorenz curve for a country.

Inequality in the distribution of welath is much greater than in terms of the distribution of income.