Lorenz Curve. The Lorenz curve is a diagrammatic representation of a country’s income inequality.
A Lorenz curve is drawn by plotting a country’s cumulative population and cumulative income, starting with the poorest first. The Lorenz curve below shows that:
- The poorest 10% earn only 5% of income.
- The next 10% earn only 6% of income.
- The richest 10% earn 25% of income.