The 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 earns the same, while a Gini of 1 means total inequality, where one person has all the income and everyone else has none. It helps gauge how evenly wealth is distributed: higher values signal greater inequality. Used by economists and policymakers, it provides insight into social and economic health, influencing decisions on taxation, welfare, and resource allocation.