The Lorenz Curve

Lorenz curves are used to show inequalities in distributions. It is use to show distribution in
population, income, food, medical care and many others. The diagonal line represents a perfectly
even distribution, while the concave curve (it may be convex) illustrates the degree of
concentration of population. The greater the concavity of the slope, the greater the inequality of
population distribution.

Figure 1.2 Lorenz curve

When representing population distribution, population, shown on the x-axis, is plotted against
area on the y. Both are plotted from 0 to 100%. If the population were evenly distributed, then
20% of the population would inhabit 20% of the area; 75% of the population would inhabit 75%
of the area. The relationship would be linear and the result would be a straight line. However,
this rarely occurs as it has been shown that some areas are more attractive to settlement than
others. The Lorenz curve commonly shows unevenness. The greater the distance of the curve
from the diagonal line, the greater the inequality in distribution.

Advantages of the Lorenz curve for displaying population inequality

 It provides a visual representation of any quality of population distribution.

 It is sufficiently simple that it can be compared across countries and be easily interpreted.
 Scale independence: it does not consider the size of the country, the way it is measured,
or whether it is it is a dense are sparsely settled.
  Population independence: it does not matter how large the population of the country is.
Disadvantages of the Lorenz curve

 The Lorenz curve may not give an accurate picture of actual inequalities if the resources
of the area are unevenly distributed.
 Populations of similar size may have dissimilar shaped curves.
 It can only be analyzed in terms of cumulative percentages.
 The measure will give different results when applied to different levels of data, for
example, constituencies instead of parishes.
 As for our statistics, there may be systematic and random errors in the data.

1. Use the information in the table to construct a Lorenz curve to represent the population
distribution of Jamaica.
Parishes Population Area (km2)
Kingston 89,057 23
St Andrew 573,369 436
St Thomas 93,902 742
Portland 81,744 814
St Mary 113,615 611
St Ann 172,362 1,210
Trelawny 75,164 874
St James 183,811 591
Hanover 69,533 451
Westmoreland 144,103 785
St Elizabeth 150,205 1,211
Manchester 186,797 829
Clarendon 245,103 1193
St Catherine 516,218 1,191
Total 2,697,983 10,961
Steps in the construction of Lorenz curve

1. Calculate the percentage population and percentage area for each parish.
2. Order the parishes by decreasing size of population.
3. Set up axis of a graph for values 1-100 percent, with the x-axis showing the cumulative
percentage of the population and the y, the cumulative percentage of the area.
4. Plot each variable according to its cumulative percentage population (x) and cumulative
percentage area (y).
5. Join the points plotted to form a smooth curve. The line x = y which indicates an even
distribution between area population may be indicated.

Parishes Population Population Cumulative Area Area Cumulative

% % (km2) % %
Kingston 89,057 3.3 23
St Andrew 573,369 21.3 436
St Thomas 93,902 3.5 742
Portland 81,744 3.0 814
St Mary 113,615 4.2 611
St Ann 172,362 6.4 1,210
Trelawny 75,164 2.8 874
St James 183,811 6.8 591
Hanover 69,533 2.6 451
Westmoreland 144,103 5.3 785
St Elizabeth 150,205 5.6 1,211
Manchester 186,797 6.9 829
Clarendon 245,103 9.1 1193
St Catherine 516,218 19.1 1,191
Total 2,697,983 100 10,961