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8 May, 2015 - 10:50

The personal distribution of income shows what proportion of households receives what share of total income. Empirical data shows that the upper 20% of the population receives over 40% of income, while the lower 20% receives less than 5%. This verifies that large income inequalities exist.

The inequality shown by the personal distribution of income is in part attributable to the large proportion of non-employment income earned by the wealthiest segment of the population.