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The gini coefficient 1 represents perfect inequality.
Gini coefficient of income distribution. The gini coefficient is a single number aimed at measuring the degree of inequality in a distribution. The index is based on the gini coefficient a statistical dispersion measurement that ranks income distribution on a scale between 0 and 1. It is most often used in economics to measure how far a country s wealth or income distribution deviates from a totally equal distribution. The gini coefficient was developed by italian statistician corrado gini in 1912 and is the most commonly used measurement of wealth or income inequality.
Thus 0 676 is the gini coefficient. The gini coefficient 0 indicates a perfect distribution of income or wealth. The gini coefficient sometimes called the gini index or gini ratio is a statistical measure of distribution intended to represent the income or wealth distribution of a nation. How to read the gini coefficient.
The term gini coefficient of a nation refers to the measurement of income distribution across the population of the nation. For instance the gini index of urban areas in a country can be compared with rural areas. In other words it can be seen as the measure of inequality of income distribution in the society and its value lies in the range of 0 and 1 where the value of 1 indicates a higher degree of income inequality. It can be used to compare income inequality across different population sectors.
The measure has been in use since its development by. This means that each individual has precisely equal income or wealth.
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