In calculating income for the Lorenz curve, one factor that is omitted, is

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In-kind transfer payments from the government, such as food stamps or housing subsidies, are often omitted from income calculations for the purpose of constructing the Lorenz curve because they do not contribute directly to a household's cash income. However, these in-kind transfers can have a significant impact on a household's overall well-being and should be considered in any broader analysis of income inequality. Capital gains income, dividend payments, and economic rent are typically included in income calculations for the Lorenz curve.

In Calculating Income for the Lorenz Curve, One Factor That