The topic of income inequality in our society today is often misunderstood and confused with other economic issues. This is because it is one of those slippery economic terms with moral, conceptual, and empirical aspects that are not necessarily intuitive. For most economists, however, income inequality has a specific meaning. To them it means how the total income ofa country or geographical entity is distributed among its citizens. In this chapter, the concepts and methods of inequality analysis that economists follow are presented.