Equity, Equality and Distribution of Income

Vocabulary terms covering the distinctions between equity and equality, including specific types of economic equity as discussed in Development Economics.

Equity

Fairness or justice in a particular situation, involving taking all individual circumstances into consideration.

Equality

The state of being the same for everyone, irrespective of their personal circumstances, where no one gets more than the other and all get the same sized share.

Horizontal Equity

A principle that requires people in similar situations be treated similarly, such as those with the same incomes paying the same tax.

Vertical Equity

A principle that requires people in different situations be treated differently, according to what society sees as fair, such as a progressive tax system.