In economics, the gini coefficient, also known as the gini index or gini ratio, is a measure of statistical dispersion intended to represent the income or wealth distribution of a nations residents, and is the most commonly used measurement of inequality. The gini coefficient is a measure of inequality of a distribution. Graph and download economic data for gini index for israel sipovginiisr from 1979 to 2016 about israel, gini, and indexes. If a 0, the gini coefficient becomes 0, which means perfect equality, whereas if b 0, the gini coefficient becomes 1, which means complete inequality. Like the relative mean difference, there does not exist a sample statistic that is in general an unbiased estimator of the population gini coefficient. Gini index world bank estimate brazil world bank, development research group. The gini index measures the extent to which the distribution of income or, in some cases, consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. Swiid the standardized world income inequality database. A low gini coefficient means a more equal distribution while a high gini coefficient means a. Tarki, april 14 th book presented to the dutch minister of social affairs. Data and research on social and welfare issues including families and children, gender equality, gini coefficient, wellbeing, poverty reduction, human capital and inequality. The range of the gini coefficient goes from 0 no concentration to \\sqrt\fracn1n\ maximal concentration. It is used as a gauge of economic inequality, measuring income distribution among a population.
Poverty and income distribution have risen to the top of the list of. Gini index for the bolivarian republic of venezuela index, annual, not seasonally adjusted 1981 to 2006 20180425 income gini ratio of families by race of householder, all races. The map shows the gini index in % of income worldwide, according to latest published data by world bank in july 2014 individual data points may be more than 10 years old. Data are based on primary household survey data obtained from government statistical agencies and world bank. The gini coefficient is one of the most famous and widely used. Measuring education inequality gini coefficients of. Definition and measurement measures of income inequality are based on data on peoples household disposable income see definition and measurement in ge1 for more detail. This paper stems from work done by the authors at the mathematics for social justice workshop held in june of 2007 at middlebury college.
You can think of the horizontal axis as percent of people and the vertical axis as the percent of income those people receive. And so, an interesting thing to do is, is look at gini coefficients for various countries and compare them. A score of 0 on the gini coefficient represents complete equality, i. Gini coefficient definition, calculation and indias rankings. In this case, the gini coefficient is 0 and it means there is perfect distribution of income everyone earns the same amount. Gini coefficient and four other inequality measures are defined on the. A gini coefficient of zero indicates perfect equality everyone earns the same income and a coefficient of one indicates perfect inequality one person holds all the income and. We provide a description of the gini coefficient and some. They present two methods direct and indirect for calculating an education gini index, and generate a quinquennial data set on education gini indexes for the over15population. A supernatural creature who does ones bidding when summoned.
Measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution. Inequality of household income as measured by the gini coefficient. The main indicator of income distribution used is the gini coefficient. They present two methods direct and indirect for calculating an education gini index and generate a quinquennial data set on education gini indexes for the over15 population in 85 countries 196090. Mar 06, 2019 the gini index is often represented graphically through the lorenz curve, which shows income or wealth distribution by plotting the population percentile by income on the horizontal axis and cumulative income on the vertical axis. Measure of the deviation of the distribution of income among. The gini coefficient is a measure of how equally income is distributed across the population. Pdf the gini index is a summary statistic that measures how.
The gini index or gini coefficient is a statistical measure of distribution which was developed by the italian statistician corrado gini in 1912. The bias corrected gini coefficient goes from 0 to 1. Incomes are more equally distributed and fewer people are poor where social spending is high. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. This statistic shows the gini coefficient, an index for measuring income distribution, for u. It is, however, recommended that more indepth studies are conducted to develop this concept further and to address some of the issues raised in this. Amsterdam, april 16 th a dutch summary of the findings for the netherlands can be found here. Your chance to have a onetoone lesson with bestselling language expert paul noble, try a free audio sample of his brand new mandarin chinese course. A popular measure of inequality is the gini coefficient, which ranges from 0 perfect equality to 1 perfect inequality, but is typically in the range of 0.
Gini index of household income inequality, by legislative. For oecd countries, in the late 20th century, considering the effect of taxes and transfer payments, the income gini coefficient ranged between 0. Pdf the gini coefficient as a measure of disproportionality. The gini coefficient is a commonlyused measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1. A value of zero represents perfect economic equality, and a value of. A score of 1 would represent complete inequality, i. The authors use a gini index to measure inequality in educational attainment. Mar 06, 2018 income inequality is measured using the gini coefficient, which calculates the extent to which the income distribution in a country deviates from perfect equity. A low gini coefficient means a more equal distribution while a high gini coefficient means a more unequal distribution. Pdf the gini index and measures of inequality researchgate. The gini coefficient can vary from 0 perfect equality, also represented as 0% to 1 perfect inequality, also represented as 100%.
In case a is a very large area and b is a small area, the gini coefficient is large. The small sample variance properties of the gini coefficient are not known, and large sample approximations to the variance of the coefficient are poor mills and zandvakili. Well in that case, the gini coefficient would be the percentage of this area, which would be 100%, which we could view as a one or 100. The gini coefficient, or gini index, is a statistical measure of economic inequality and wealth distribution among a population. Information and translations of gini coefficient in the most comprehensive dictionary definitions resource on the web. Feb 24, 2010 the gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. Gini coefficient definition, formula how to calculate. A measure of income inequality within a population, ranging from zero for complete equality, to one if one person has all the income. Table distribution of income or consumption in tables world development indicators the world bank 2014. Gini synonyms, gini pronunciation, gini translation, english dictionary definition of gini. Oct 29, 2019 this statistic shows the gini coefficient, an index for measuring income distribution, for u. The gini coefficient, gini index, or coefficient of concentration is a concept that comes up for example in economics, when looking at the distribution of incomes.
It indicates there is huge incomewealth inequality. Gini coefficient and lorenz curve video khan academy. What is the gini coefficient and what is its formula. I downloaded data for 2006 family income from the u. The gini, which provides a synthetic measure of inequality, ranges from 0 in case of perfect equality to 1 a situation in which one person captures all resources in an economy. Gini coefficient diagram, based on the version by bluemoosebenfrantzdale. Extended version of the gini index with different weighting schemes are also discussed. Gini coefficient as a life table function demographic research.
The lowest 10% of earners make 2% of all wages the next 40% of earners make 18% of all wages the next 40% of earners make 30% of all wages the highest 10% of earners make 50% of all wages. Summary this tool addresses the most popular inequality index, the gini index. Gini coefficient and lorenz curve explained towards data. 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.
It takes a value between 0 and 100, with 0 representing perfect equality where every person has the same income. The gini coefficient also known as the gini index or gini ratio is a measure of statistical dispersion developed by the italian statistician and sociologist corrado gini and published in his 1912 paper variability and mutability italian. In 2018, according to the gini coefficient, household income distribution in the united states was 0. It is defined as a ratio with values between 0 and 1. A simple way to calculate the gini coefficient, and some implications. The gini coefficient was proposed by gini as a measure of inequality of income or wealth.
The gini index or gini coefficient is a statistical measure of distribution developed by the italian statistician corrado gini in 1912. Difference between the estimated distribution of household income and a perfectly equal distribution, measured between 0 and 1 e. Gini can also be expressed in percentages gini coefficient. A gini coefficient of 0 expresses perfect equality, where all would have. Gini index world bank estimate bahrain world bank, development research group. Mar 20, 2020 graph and download economic data for gini index for germany sipovginideu from 1991 to 2016 about gini, germany, and indexes. The gini coefficient is a measure of inequality of incomes or sometimes wealth across individuals a score of 0 on the gini coefficient represents complete equality, i. The gini coefficient is defined as a ratio of the areas on the lorenz curve diagram. It discusses its characteristics and the link with another popular graphical tool of representing inequality, the lorenz curve. Mathematically, the gini coefficient is defined as a ratio of the areas on the lorenz curve diagram see figure 8.
There are many ways to express and calculate the gini coefficient from the individual data a popular and easy formula derived in pyatt. Income definition is disposable household income from lis. The gini coefficient is a measure of inequality of incomes or sometimes wealth across individuals. Danmarks statistik beregner saledes, at ginikoefficienten er steget fra 22,1 i 1987 til 29,3 i 2017, en stigning pa ca. Notes on how to compute gini coefficient suppose you are given data like this. Gini coefficient and lorenz curve pdf download, cambridge international as and alevel chemistry course book free download ae94280627 estimation of the gini coefficient for the lognormal distribution of income using the. Measuring education inequality gini coefficients of education english abstract. Income is in equivalent dollars using the square root of family size as the equivalence. It is often used as a gauge of economic inequality, measuring. Thus a gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. If we order ascending by the wealth gini, take note that the united states is at the bottom of the list with one of the largest gini coefficients. Confidence intervals for the population gini coefficient can be calculated using bootstrap techniques.
If a 0, it means the lorenz curve is actually the line of equality. Rongxing guo, in understanding the chinese economies, 20. It is defined as the area between the lorenz curve and the diagonal, divided by the total area under the diagonal. Thomas, wang, and fan use a gini index to measure inequality in educational attainment.
Gini coefficient wikipedia statistics, economics a measure of the inequality of a statistical distribution, ranging from 0 total equality to 1 maximal inequality, used in various disciplines but especially in economics to compare incomes or wealth. Market and disposable income inequality by country using the gini coefficient. I will discuss the gini coefficient and relate it to the relative mean difference. Developed in 1912 by corado gini an italian statistician the gini coefficient is most prominently used as a measure of inequality of income or wealth distribution. So if everyone in a country had the same income, the number would be 0, and if one person made all the money and everyone else made. 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. Gini index of household income inequality regions of 10,000. A gini coefficient of 0 expresses perfect equality, where all. The formula for the gini coefficient can be calculated. This page on wikipedia has the gini coefficient of wealth for a list of countries. For users of stata, there is a fastgini command that can be downloaded and.
Some poverty indices incorporate inequality in their definition. Definition of gini coefficient new word suggestion. In other words, the yellow area for the lorenz curve of the united states is larger than most other countries. Definition of inequality much of this handbook focuses on povertythe situation of individuals or house. Crossnational research on the causes and consequences of income inequality has been hindered by the limitations of the existing inequality datasets. Data are based on primary household survey data obtained from government statistical. Gini index world bank estimate world bank, development research group. A value of 0 represents absolute equality, a value of 100 absolute inequality.
The gini coefficient is used to measure inequality of a region. Lorenz curve coincides with the diagonal in figure 2 and 1 perfect inequality. Oecd glossary of statistical terms gini index definition. The lower the gini value, the more equal a society is. Gini ranges from 0 to 1, where 0 means perfect equality everyone has the same incomewealth and 1 means absolute inequality one person gets the whole incomewealth and the others get nothing. Gini coefficients available wid world inequality database. The distribution of income in an economy is represented by the lorenz curve and the degree of income inequality is measured through the gini coefficient one of the five major and common macroeconomic goals of a government is the equitable fair distribution of income. The gini coefficient is equal to the area below the line of perfect equality 0. The gini coefficient is calculated as the ratio of the area that lies between the straight 45degree line and the lorenz curve marked area a in figure 1. For example, figure 2 shows that the gini coefficient for disposable household income ranges from 0. Applying the gini coefficient to measure inequality of water use in the olifants river water management area, south africa james cullis and barbara van koppen introduction benefits of water use.
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