Definition
- Line of perfect equality
- The line of perfect equality is the diagonal where the bottom forty per cent of people get forty per cent of income, and so on for every share.
- Not to be confused with: Lorenz curve
- A Lorenz curve is a graph comparing the cumulative share of income actually received with a perfectly equal distribution of income.
Test yourself
What is the difference between line of perfect equality and lorenz curve?
Lorenz curve: A Lorenz curve is a graph comparing the cumulative share of income actually received with a perfectly equal distribution of income.