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Impact on Society
01 January 2009
Understanding inequality
Impact on Society
Many people do not know, or have the wrong idea, about how their income compares to the rest of the population. Giving people a better understanding of where they lie helps them to engage in policy discussion and evaluate policy proposals. Working out where an individual lies in the income distribution involves a number of conceptual issues, including deciding what measure of income to use and what account to take of the needs of different types of households.

Drawing on extensive past work understanding and analysing inequality, we developed an accessible online guide to these issues and an interactive model that plots their position in a distributional graph and allows them to download some key figures about inequality.