Because wealth is more concentrated than income, the Gini coefficient for the wealth distribution is greater than the Gini coefficient for the income distribution.

Question

Quizplus · Accepted Answer

This is true because wealthy individuals hold a larger share of total wealth compared to those with lower incomes, thus increasing the concentration of wealth and resulting in a higher Gini coefficient for the wealth distribution. In contrast, the income distribution may be more evenly spread out, leading to a lower Gini coefficient.

Because Wealth Is More Concentrated Than Income, the Gini Coefficient