Income distribution is the smoothness or equality with which income is dealt out among members of a

Income distribution is the smoothness or equality with which income is dealt out among members of a

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Income distribution is the smoothness or equality with which income is dealt out among  members of a society. If everyone earns exactly the same amount of money, then the  income distribution is perfectly equal. If no one earns any money except for one person,  who earns all of the money, then the income distribution is perfectly unequal. Usually,  however, a society's income distribution falls somewhere in the middle between equal  and unequal.  How do we measure this degree of equality or inequality? Economists often measure  income equality by measuring how much income is earned by different segments of the  population. For instance, if we break down all workers into five segments in terms of  how much money they make: the top 20%, the second 20%, the third 20%, the fourth 
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This note was uploaded on 12/13/2011 for the course ECO 1320 taught by Professor Staff during the Fall '11 term at Texas State.

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