Economics Part B

Gini coefficient

What is Gini coefficient

One of the coefficients commonly used in measuring income differentials (or salary) between different groups in the country.

The coefficient is between 0 and 1. In the case of absolute equality (all the citizens of the country have the identical income), the coefficient will be 0. In the case of absolute inequality (one citizen has everything and the rest nothing), the coefficient is 1.

Gini coefficient553Gini coefficient