Income distribution refers to how a nation's total earnings are divided among its population. It describes how wealth is allocated across different social groups, such as rich, poor, and middle-class.
Related terms
Poverty Rate: The percentage of people living below the poverty line within a specific geographic area or country.
Middle Class Squeeze: Refers to economic pressures faced by middle-income earners due to rising costs and stagnant wages.
Progressive Tax System: A tax system where individuals with higher incomes are taxed at higher rates, aimed at reducing income inequality.