Definition
- Income inequality
- Income inequality is when one group receives a disproportionate share of total income or wealth compared with others.
- Not to be confused with: Poverty
- Poverty is the situation of being below a certain level of income one needs for a basic standard of living.
Test yourself
What is the difference between income inequality and poverty?
Inequality compares the shares different groups receive; poverty compares a household's income with a line.
Learn it properly: the module
Also in: The causes of poverty