This refers to uneven distribution of income among the different people in society. It can be defined as the economic differences between the rich and the poor. Income inequality can be explained by the use of a Lorenz curve model.

 The Lorenz curve model

It is a model which shows the overall distribution of income among the various social groups. It shows the percentage of GNP allocated to any percentage of the population.

Illustration a Lorenz curve model

The graph above shows that a certain percentage of GNP is supposed to be received by a certain percentage of the population

The line of perfect equality indicates that 50% of the population receives 50% of the GNP . The Lorenz curve ABC represent the distribution of income in the different countries curve a show that 50%of the population receive   about 505 of the population  3 indicates that 50% of the population receives about 25% of the NP and curve C indicates that 50% of the population receives 20% of the GNP

NB ' The case  is the Lorenz curve to the line of perfect equality the more even fairer is the distribution of income and the further is the Lorenz curve to the line of perfect equality the more uneven or unequal is the distribution of income between the various social groups