| A | B |
|---|
| After-Tax Income Distribution | The spread of incomes after taxes have been taken out. |
| 80/20 Ratio | A measure of income inequality obtained by dividing the 80th percentile of income earners by the 20th percentile. |
| Effective Tax Rate | The share of income a household pays in taxes. |
| Income Distribution | Share of households at different income levels. |
| Income | The amount of money an individual receives in a year from various sources. |
| Income Inequality | The disparity between high-income and low-income households or individuals. |
| Income Mobility | The change in an individual’s income over his or her lifetime. |
| Labor Market Discrimination | When an individual is paid less or treated worse on the job than an equally qualified person because of his or her race, gender, or some other characteristic. |
| Poverty Line | An income level that is supposed to indicate the lowest acceptable living standard in an economy; it depends on the number of people in the household and is adjusted for inflation each year. |
| Poverty Rate | The percentage of people living in households that earn incomes below the poverty line. |
| Pre-Tax Income Distribution | The spread of incomes before taxes have been taken out. |
| Progressive Taxes | A tax that requires high-income households to pay a higher tax rate than low-income households. |
| Quintiles | 20 percent of a group. Used when considering income distribution. |
| Redistribution | The transfer of money from high-income to low-income households. |
| Regressive Taxes | A tax that requires high-income households to pay a lower tax rate than low-income households. |
| Superstar Economy | Situations in which there is a widening gap in compensation between the top people and the merely competent. |
