Definition of Gini index:
Standard economic measure of income inequality, based on Lorenz Curve. A society that scores 0.0 on the Gini scale has perfect equality in income distribution. Higher the number over 0 higher the inequality, and the score of 1.0 (or 100) indicates total inequality where only one person corners all the income. It is used also as a measure of other distributional inequalities such as market share. Named after its inventor, the Italian statistician Corrado Gini (1884-1965). Also called Gini coefficient or index of concentration.
A country in which every resident has the same income would have an income Gini coefficient of 0. A country in which one resident earned all the income, while everyone else earned nothing, would have an income Gini coefficient of 1.
The Gini index or Gini coefficient is a statistical measure of distribution developed by the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. The coefficient ranges from 0 (or 0%) to 1 (or 100%), with 0 representing perfect equality and 1 representing perfect inequality. Values over 1 are theoretically possible due to negative income or wealth.
How to use Gini index in a sentence?
- A higher Gini index indicates greater inequality, with high income individuals receiving much larger percentages of the total income of the population.
- Because of data and other limitations, the Gini index may overstate income inequality and can obscure important information about income distribution.
- You should try to break down the gini index to find out where the people with the most money live in your city.
- Based on its high Gini Index score, economists have determined that the United Arab Emirates has a largely unequal distribution of income among its citizens.
- I wondered how we ranked on the gini index , because I knew that it was very important and would determine a lot of future choices.
- Global inequality as measured by the Gini index increased over the 19th and 20th centuries, but has declined in more recent years.
- The Gini index is a simple measure of the distribution of income across income percentiles in a population.
Meaning of Gini index & Gini index Definition