The Key Difference Between Wealth and Income Distribution
Feature |
Wealth Distribution |
Income Distribution |
Definition |
How assets, properties, and net worth are spread among individuals or groups. |
How earned money (wages, salaries, profits) is divided among people. |
Measurement |
Includes real estate, investments, savings, and valuables. |
Measured by salaries, wages, bonuses, and other income streams. |
Time Frame |
Represents accumulated wealth over time. |
Represents flow of money over a specific period (e.g., monthly, yearly). |
Stability |
Generally more stable and changes slowly. |
More volatile and subject to fluctuations. |
Impact on Economy |
Influences economic power, investment potential, and social class. |
Affects consumption patterns and living standards. |
Policy Focus |
Policies may focus on wealth taxes, inheritance taxes. |
Policies often target minimum wage, progressive taxation. |
Measurement Tools |
Wealth surveys, net worth reports, asset registers. |
Income surveys, tax records, employment data. |
Examples |
Distribution of property ownership among top 10% vs bottom 50%. |
Income disparities between high earners and low earners. |
wealth distribution vs income distribution
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