StatÒmetro - Lorenz curve

Dashboard StatÒmetro - Lorenz curve for the Metropolitan City of Turin. The Lorenz curve is a graph used to represent and study the concentration of income and well-being existing in a country in a given year. Lorenz developed this tool in 1905 in order to measure and compare the evolution of inequality in the distribution of income and well-being in a given country over the years. The Lorenz curve is represented graphically within a square (graph) where on the X axis the percentage of the population is indicated while on the Y axis the percentage of accumulated income. Within the square there is a bisector, known as the ‘equi-distribution line’, which indicates the perfect distribution of income among the population. On the axis of the ordinates is placed the percentage of income earned and on the axis of the abscissa the percentage of population receiving income. If the distribution is fair 30% of the population will earn 30% of the income and so the concentration curve becomes a straight line with a 45° inclination. If income is not distributed evenly, 30% of the population could earn 10% of income. In the latter case, the curve will lie below the line at 45°. Broadly speaking, the lower its position, the greater the inequality of distribution. Source: MEF, Personal Income Statements Irpef