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How would the Lorenz Curve used to calculate the income inequality look like when everyone in...

How would the Lorenz Curve used to calculate the income inequality look like when everyone in a country gets exactly the same wage?

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The Lorenz Curve (i.e. the actual distribution of income curve), a graphical representation of income inequality or wealth inequality developed by American economist Max Lorenz in 1905. It shows the proportion of income earned by any given percentage of the population. The line at the 45º angle shows perfectly equal income distribution, while the other line shows the actual distribution of income. The further away from the diagonal, the more unequal the size of the loo Populahan/Under same loo. distribution of income.In the attached diagram, the Lorenz Curve, which represents the actual distribution of income in a country, when everyone in a country gets exactly the same wage.

The area between the straight line and the curved line, expressed as a ratio of the area under the straight line, is the Gini Coefficient, a measurement of inequality. The Gini coefficient is used to express the extent of inequality in a single figure. It can range from 0 (or 0%) to 1 (or 100%). Complete equality, in which every individual has the exact same income or wealth, corresponds to a coefficient of 0. Plotted as a Lorenz curve, complete equality would be a straight diagonal line with a slope of 1 (the area between this curve and itself is 0, so the Gini coefficient is 0). A coefficient of 1 means that one person earns all of the income or holds all of the wealth.

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