Gini Coefficient
The Gini Coefficient is a measure of income inequality within a population, ranging from 0 to 1. A Gini of 0 indicates perfect equality, where everyone has the same income, while a Gini of 1 signifies complete inequality, where one person has all the income, and others have none. It is often represented as a percentage, with lower values indicating more equal income distribution and higher values indicating greater disparity. Policymakers and economists use it to assess economic equity and to inform decisions regarding social and economic policies.
Additional Insights
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The Gini coefficient is a measure of income inequality within a population, ranging from 0 to 1. A Gini coefficient of 0 indicates perfect equality, where everyone earns the same amount, while a coefficient of 1 signifies total inequality, where one person has all the income and others have none. It helps to understand how wealth or income is distributed among people in a society. A lower Gini coefficient suggests a more equal distribution, while a higher value indicates greater disparity in earnings, often used by economists to analyze socioeconomic conditions across different countries or regions.