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Inequality
The disparity in the distribution of national income and economic welfare. The causes for inequality are diverse but include market failure, lack of opportunity for upward mobility, and adverse redistributive national and global economic policies. The lack of opportunity, which is usually the result of poor-quality education or lack thereof, poor health provisions, and the presence of racial and gender discrimination, creates an inequality trap that stifles upward mobility or perpetuates poverty in the poorest segment of society.
Some economists measure inequality in terms of income distribution, but development economists tend to focus on household consumption, measured in terms of expenditures in cash or kind. Wealth may alternatively be used as a broader indicator of available opportunity.
Traditionally, the Gini coefficient, a ratio, is used to measure ...