The Upper Part of the Earnings Distribution in the United States: How Has It Changed?

by Kelvin R. Utendorf
Social Security Bulletin, Vol. 64 No. 3, 2001/2002

Text Description for Chart A-1.
Illustrative calculation of the Gini coefficient

There are two lines on the chart, labeled line of equality and Lorenz curve. The horizontal axis is labeled percentage of earners. The vertical axis is labeled percentage of earnings. Both axes range from zero to 100 in increments of 20. In the chart, both lines begin at the zero-zero coordinate and end at the 100-100 coordinate.

The line of equality is a straight line. The Lorenz curve bends away from and appears below the line of equality. The Lorenz curve's maximum departure from the line of equality is near point A, at approximately the 60-25 coordinate. The area between the line of equality and the Lorenz curve is labeled Area B. The area below the Lorenz curve is labeled Area C.