What Is the Gini Coefficient?
Zero means perfect equality; on the World Bank scale 100 means perfect inequality, and the OECD uses 0 to 1.
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1.What does the Gini coefficient measure?
Zero means perfect equality; on the World Bank scale 100 means perfect inequality, and the OECD uses 0 to 1.
2.Does a low Gini mean a rich country?
A single number on a ranking list looks like a score of success, but it is not.
3.Town A has five households earning 20,000 each. What is its Gini?
Everyone has the same share, so the Gini is zero.
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Sources (4)
- Gini index, Metadata Glossary SI.POV.GINI (World Bank DataBank)
- Cobham, A. and Sumner, A., On inequality, let's do the Palma (because the Gini is so last century), Global Dashboard, 21.03.2013 (Blogbeitrag)
- OECD, Income inequality indicator / Income Distribution Database (nur Suchauszug)
- Eigene Rechnung: Stadt A, B
Education only. Not financial advice.