Income inequality refers to the unequal distribution of income within a society or between different groups of people. It is a concept that highlights the disparities in income levels and the concentration of wealth among individuals or households. There are various types of income inequality that can be observed globally, such as vertical inequality, which refers to the differences in income between individuals or households; horizontal inequality, which refers to the disparities based on social characteristics like gender, race, or ethnicity; and spatial inequality, which refers to the regional or geographical variation in income levels. These types of income inequality play a significant role in shaping social and economic dynamics within societies.