Income Inequality: Introducing the Resource Distribution Index (RDI)

Abstract Develops the Resource Distribution Index (RDI), incorporating income and access to essential resources, for a comprehensive local-level inequality view. More this study aims to solve the issue of income inequality from micro to macro level. Uses secondary data from literature to construct RDI, comparing its scores with traditional measures like the Gini Coefficient and Palma Ratio. The RDI reveals significant disparities in access to essential resources, especially in areas where income measures alone suggest lower inequality. By integrating resource access with income, the RDI better identifies regions in need of targeted interventions, supporting more effective policy recommendations. The idea and findings of RDI is aligned with conventional theories and religious books. Relies on secondary data, which may lack local detail. Future research could incorporate primary data to refine the RDI further. For evaluating and resolving issue of inequality that goes beyond income, the RDI provides policymakers, urban planners, and community leaders with a useful guideline. By using it, communities can get advantage from more focused, socially significant interventions meant to increase resource distribution. globally applicable, the RDI is particularly suited to Australia’s goals for inclusivity and sustainability. This study contributes through introducing a holistic inequality measure that combines income and resource access, filling a research gap in existing studies and presents a more actionable index for local-level interventions on micro level leading to macro level.