ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Income Inequality? Income inequality is how unevenly income is distributed throughout a population. The less equal the distribution, the higher income inequality is. Income inequality is often accompanied by wealth inequality, which is the uneven distribution of wealth.

Detailed explanation-2: -The Gini coefficient ranges from 0, indicating perfect equality (where everyone receives an equal share), to 1, perfect inequality (where only one recipient or group of recipients receives all the income).

Detailed explanation-3: -For example, the 90/10 ratio takes the ratio of the top 10% of incomes (Decile 10) to the lowest 10% of incomes (Decile 1). A 90/10 ratio of five means that the richest 10% of the population earn five times more than the poorest 10%.

Detailed explanation-4: -Poverty and social discrimination are the main reasons for inequality. Poverty would lead to denial of access to the resources. Social discrimination based on caste and gender leads to treating people without any dignity.