The Palma ratio is an economic indicator that measures income inequality within a society. It compares the share of income received by the top 10% of the population to the share received by the bottom 40%. This ratio provides insights into the distribution of wealth and the concentration of economic power. A high Palma ratio indicates a significant wealth gap, suggesting that a small portion of the population controls a large proportion of the income, while a lower ratio suggests a more equal distribution of income. By understanding the Palma ratio, policymakers and economists can gain valuable information to address income disparities and promote a fairer society.