Gini Coefficient
A statistical measure of income or wealth inequality ranging from 0 (perfect equality) to 1 (maximum inequality).
What is Gini Coefficient?
The Gini coefficient is a statistical measure of income or wealth inequality within a population, developed by Italian statistician Corrado Gini in 1912. It ranges from 0, representing perfect equality where everyone earns the same, to 1, representing maximum inequality where one person holds all income. It is derived from the Lorenz curve and is widely used by economists and policymakers to compare income distribution across countries and time.
Example
The US Gini coefficient for household income is approximately 0.49, higher than most other developed economies. Sweden's is roughly 0.27. The gap reflects differences in pre-tax income distribution, social safety nets, and tax policies, and is monitored closely by economists studying inequality and growth.
Source: World Bank — Gini Index Data