Why the “income distribution” is so misleading
AMONG social scientists, the yearly distribution of money income is one of the most frequently used measures of economic and social well-being. Whether expressed graphically (as a bell-shaped curve), in terms of averages (a certain percentage of the population receives less than half of median income), or in percentiles (people in the top X percent receive over Y percent of national income), this distribution is assumed to tell us a great deal about our social and economic reality.