The gini coefficient is the most widely used single-summary number for Except that the bottom percent by definition must earn percent of the income. Gini Definition. Definition: The Gini coefficient is a measure of inequality developed by the Italian statistician Corrado Gini and published in It is usually. Fifty years ago, Corrado Gini, inventor of the Gini coefficient, which measures income inequality, died. How does it work, asks Chris.
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This states that if we transfer income from a rich person to a poor person, the resulting gini coefficient definition is more equal.
Disadvantages There is an implication built into the Gini coefficient that a straight-line distribution is a desirable outcome, which in the newly evolving long tail economics where rich people are very rich may not be the case.
Comparing income distributions among countries may be difficult because benefits systems may be different in different countries. For example, gini coefficient definition countries give benefits in the form of money, others use food stamps, which may or may not be counted as income in the Lorenz curve and therefore not taken into account in the Gini coefficient.
The Lorenz curve may understate the actual amount of inequality if the situation is that richer households are able to use income more wisely than lower income households. From another point of view, however, the measured inequality also may be the result of more or less wise use of household incomes.
The demographic structure should gini coefficient definition taken into account. Countries with an aging population, or with a baby boom, experience an increasing pre-tax Gini coefficient even if real income distribution for working adults remains constant.
In the gini coefficient definition below, the 47th percentile corresponds to The straight line represents a hypothetically equal society: Subtracting that figure from 0.
Who, What, Why: What is the Gini coefficient? - BBC News
This yields an approximate Gini of 0. Another way of thinking about the Gini coefficient is as a measure of deviation from perfect equality. The 45 degree upward line indicates the equality distribution and the below curve indicates the Lorenz curve. The existence of inequality is equal to the gini coefficient definition between Lorenz curve and the equality distribution line.
Same Gini coefficient for two countries: After Italian statistician and sociologist. Gini coefficient The Gini coefficient is a measure of statistical dispersion developed by the Italian statistician and sociologist Corrado Gini and published gini coefficient definition his paper "Variability and Mutability".
The Gini coefficient measures the inequality among values of a frequency distribution.