Distribution of income

Distribution of income refers to how a country’s total earnings are shared among its population, ranging from individuals to households. It shows whether wealth is spread evenly or concentrated among a few. A more equal distribution means many people earn similar incomes, while an unequal one indicates that a small percentage holds a large share of wealth. This concept affects economic stability, social mobility, and overall quality of life, influencing policies aimed at reducing poverty and promoting fairness. Understanding income distribution helps assess economic health and social equity within a society.