Gini Coefficient
Definition
The Gini coefficient is a statistical measure used to quantify income inequality within a country. It ranges from 0 (perfect equality) to 1 (maximum inequality), where higher values indicate greater income inequality.
Analogy
Think of the Gini coefficient as a ruler that measures how far apart people's incomes are in a society. The higher the Gini coefficient, the wider the gap between rich and poor.
Related terms
Lorenz Curve: The Lorenz curve is a graphical representation used to visualize income distribution within an economy.
Income Inequality: Income inequality refers to the unequal distribution of income among individuals or households in an economy.
Poverty Line: The poverty line represents the minimum level of income required for individuals or families to meet basic needs such as food, shelter, and clothing.
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