The Key Difference Between Income and Wealth Inequality

income vs wealth inequality
Feature	Income Inequality	Wealth Inequality
Definition	Differences in earnings and wages among individuals or groups.	Differences in total assets and net worth held by individuals or groups.
Measurement	Measured by income distribution metrics like Gini coefficient or income percentiles.	Measured by wealth distribution data, including assets like property, stocks, and savings.
Focus	Focuses on flow of money received regularly (salary, wages, dividends).	Focuses on accumulated assets and savings over time.
Impact	Directly affects consumption ability and living standards.	Influences long-term financial security and economic power.
Volatility	More volatile, can change year to year with employment or market changes.	More stable, changes slowly over time with asset appreciation or depletion.
Policy Approaches	Progressive taxation, minimum wage laws, social welfare programs.	Estate taxes, capital gains taxes, wealth redistribution policies.
Examples	Differences in salaries between executives and workers.	Large disparities in homeownership and stock ownership.