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The gini coefficient measures the inequality among the values of a frequency distribution, such as income levels The gini coefficient incorporates the detailed shares data into a single statistic, which summarizes the dispersion of income across the entire income distribution. A gini coefficient of 0 reflects perfect equality, where all income or wealth values are the same.
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The gini coefficient, also called the gini index or gini ratio, is the most commonly used measure of income distribution—simply put, the higher the gini coefficient, the greater the gap between the incomes of a country’s richest and poorest people. The gini index is a summary measure of income inequality World bank, poverty and inequality platform
Data are based on primary household survey data obtained from government statistical agencies and world bank country departments
The gini coefficient, or gini index, is the most commonly used measure of inequality The gini index, developed by corrado gini in 1912, measures income inequality on a scale from 0 (perfect equality) to 1 (perfect inequality), with south africa having the highest recorded gini. The gini coefficient, or gini index, is derived from the lorenz curve, and like the lorenz curve, it measures the degree of economic equality across a given population and simplifies this reality into a single number. A gini of 0 indicates perfect equality, while 1 indicates that all income goes to one person and none to everyone else
The index is often used by economists and policymakers to assess inequality within a country or region. The gini index measures the area between the lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line Thus a gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. The gini coefficient summarizes how much the distribution of income (or other measures, like consumption or wealth) among individuals or households deviates from a perfectly equal distribution.
