Constructing a Lorenz Curve (HL only)

This topic explains how the Lorenz curve displays the cumulative share of income or wealth held by successive portions of the population and how the Gini coefficient converts that graphical information into a single number measuring inequality. Together they let economists and policymakers compare degrees of income or wealth inequality across time or between countries and guide redistribution or other policy choices. HL students must be able to construct a Lorenz curve from income quintile data and use it to compute the Gini coefficient.