Country Lorenz
Country Lorenz curves
We can build a Lorenz curve for an entire country by splitting its population into deciles. This allows us to compare inequality between countries or within a country at different points in time.
Exercise
Use the tools below to determine the following: in 2018, can Australia and the USA be ranked using the transfer principle or Lorenz criterion? What about India and Sri Lanka?
- Notice the Lorenz curves for Australia and the USA do not cross. Therefore, these countries can be ranked by the transfer principle or Lorenz criterion.
- The Lorenz curves for India and Sri Lanka do cross. Therefore, these countries cannot be ranked by the transfer principle or Lorenz criterion.
The following tool is useful for comparing inequality between countries in a given year. First, select the countries you would like to compare and then select the year.
Comparing inequality across countries
The following tool is useful for comparing inequality within a country at different points in time. First, select the years you would like to compare and then select the country.