What is wilson curve?

The Wilson curve, also known as the functional form of the distribution of income and wealth, is a graphical representation of the unequal distribution of income or wealth in a society. It was first introduced by British economist Sir Arthur Lewis and later developed by American economist William Wilson in the 1920s.

The curve plots the cumulative percentage of income or wealth earned against the cumulative percentage of the population. It starts from the bottom left corner, where the poorest 10% of the population receives the lowest share of income or wealth, and rises to the top right corner, where the wealthiest 10% of the population receives the highest share of income or wealth.

The slope of the Wilson curve indicates the level of income or wealth inequality in a society. The steeper the curve, the greater the level of inequality. On the other hand, a flatter curve indicates a more equal distribution of income or wealth.

The Wilson curve is often used by economists and policymakers to assess the level of income or wealth inequality within a society and to analyze the effectiveness of policies aimed at reducing inequality.