Income Inequality Gini Coefficient

The coefficient of country b has fallen from 0 38 in 2010 to 0 29 in 2015.

Income inequality gini coefficient. How to read the gini coefficient. The gini coefficient and other standard inequality indices reduce to a common form. And the analysis begins with what social scientists call the gini coefficient. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality.

A gini coefficient of country a has shown a rising trend from 0 40 in 2010 to 0 57 in 2015. The gini coefficient 0 indicates a perfect distribution of income or wealth. A coefficient of zero indicates a perfectly equal distribution of income or wealth gross domestic product gdp gross domestic product gdp is a standard measure of a country s economic. World development indicators 2013 washington d c.

Gini index world bank estimate world bank development research group. For more information and methodology please see povcalnet. The data refer to 2010 2017. Income gini coefficient.

Measures of inequality then are. The gini coefficient 1 represents perfect inequality. Measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution. The gini coefficient ranges from 0 0 to 1 100 with 0 representing perfect equality and 1 representing perfect inequality.

Hence income inequality in country a has risen in these years. The gini coefficient was developed by italian statistician corrado gini in 1912 and is the most commonly used measurement of wealth or income inequality. This means that each individual has precisely equal income or wealth. The gini coefficient is one of the most frequently used measures of economic inequality.

Income from black market economic activity is not included. Income inequality among individuals is measured here by five indicators. A higher gini coefficient means greater inequality. Or if you make it a percentage it s between 0 and 100.

Income inequality is defined by gini index between 0 and 1 where 0 corresponds with perfect equality and 1 corresponds with absolute inequality. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. Therefore income inequality in country b has declined over these years. The coefficient can take any values between 0 to 1 or 0 to 100.

The gini developed by italian statistician corrado gini in 1912 is a measure of income inequality. A value of 0 represents absolute equality a value of 100 absolute inequality. Gini in a bottle.