What shifts the Lorenz curve?

When the unequal distribution of income keeps increasing, the lorenz curve keeps shifting away from the line of equality. The Lorenz curve was developed by Max O. Lorenz in 1905. You can read about the Lorenz Curve: Definition, Explanation and Relevant Questions in the given link.

When the lorenz curve shifts farther away from the line of equality, the gini coefficient keeps increasing. When the lorenz curve is closer to the line of equality, the gini coefficient is lower, meaning the unequal distribution of income or wealth is lower.

Further readings:

  1. Gini Coefficient – Definition, Calculation and India’s Rankings
  2. Income Inequality In India: Background, Factors and Conclusion

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