Topic Videos

Key Diagrams - The Lorenz Curve

Level:
A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 30 May 2022

In this video we walk through a Lorenz Curve diagram - an important diagram to use when discussing income & wealth inequality.

Key Diagrams - The Lorenz Curve

What is a Lorenz Curve?

The Lorenz Curve illustrates the distribution of income (or wealth). It shows the cumulative share of income from different deciles of the population. If there was perfect equality, then the poorest 20% of the population would gain 20% of total income. The poorest 50% of the population would get 50% of income. Income would fall the line of perfect equality. In reality, income is skewed towards the richer deciles among the population.

Selection of countries – Gini Coefficient (2019 or earlier)
South Africa: 0.63
Brazil: 0.53
USA: 0.48
Mexico: 0.45
UK: 0.35
South Korea: 0.33
Ukraine: 0.26

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