What is Income Inequality?
Income inequality is a broad term used to measure the inequality of household/individual income of various members within an economy. Income has multiple streams including wages, salaries, interest, dividends, rent received, profits earned, benefits received, etc.
Income inequality is often represented in a statistical form, measuring percentage of incomes for different groups vs the entire population. For example, an Economy Policy Institute (EPI) survey in the US in 2015 revealed that a family in the top 1 percent nationally received, on average, 26.3 times as much income as a family in the bottom 99 percent.