1. Annual Earnings Distribution, 2002
Chapter 16: The Personal Distribution of Earnings
12/2/2018
1. Describing the Distribution of Earnings
Annual Earnings Distribution, 2002
The distribution of personal earnings among full-time workers is highly unequal and skewed right.
The distribution is characterized by (1) much bunching around the leftward mode, (2) and extended rightward tail, (3) a mean, $40,140, that exceeds the median, $30,000, (one-half above, one- half below).

2. 12/2/2018
Lorenz Curve
The Lorenz curve provides a summary of the earnings distribution.
Percent of Full-time Earnings
Percent of Full-time Workers
Perfect Equality
100
Lorenz Curve
The straight red line represents perfect equality in the earnings distribution. Twenty percent of all earners get 20 percent of all earnings, 40 percent of the workers would get 40 percent, etc.
The curved blue line illustrates a Lorenz curve. The curve shows that lower income workers do not a proportionate share of all earnings.
The greater the area between the line of perfect equality and the Lorenz curve, the more unequal the distribution of earnings.

3. Distribution of Annual Earnings, 2002
12/2/2018
Distribution of Annual Earnings, 2002
The distribution of personal earnings among full-time workers is highly unequal as the highest 20% of earners received 46.5% of all earnings.