Income inequality metrics

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Illustration of the relation between Theil index <math>T</math> and the Hoover index <math>H</math> for societies divides into two quantiles ("a-fractiles"). Here the Hoover index and the Theil are equal at a value of around 0.46. The red curve shows the difference between the Theil index and the Hoover index as a function of the Hoover index. The green curve shows the Theil index divided by the Hoover index as a function of the Hoover index.

The concept of inequality is distinct from that of poverty and fairness. Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income, and economic inequality among the participants in a particular economy, such as that of a specific country or of the world in general. While different theories may try to explain how income inequality comes about, income inequality metrics simply provide a system of measurement used to determine the dispersion of incomes.

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