# Intermediate Microeconomics

## 8. Income Inequality

Income inequality has increased in the U.S. (and many other countries) over the last 30 years or so. As a result, academics and policymakers have debated the pros and cons of increased income equality and what, if anything, should be done about it. Because the analysis of income inequality is mostly empirical, the Pencasts for this topic focus on how one might measure inequality using a Lorenz Curve and calcluating a Gini Coefficient.

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## Perfect Equality Lorenz CurveThis Pencast illustrates a Lorenz curve in which income is distributed equally throughout the population. |

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## Lorenz Curve with an Unequal Distribution of IncomeThis Pencast illustrates a Lorenz curve in which income is distributed unequally throughout the population. |

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## Gini CoeffiicentThis Pencast shows how to use actual and perfect-equality Lorenz curves to calculate the Gini Coefficient, which is a measure of inequality. |

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## Increase in Income InequalityThis Pencast shows an outward shift (down and to the right) of a Lorenz curve, which would indicate an increase in income inequality. |