Theil Index

The Theil Index is a statistical tool used to measure income inequality within a group, such as a country or community. It quantifies how unevenly income is distributed, with higher numbers indicating greater disparity. The index considers both the differences between individual incomes and how those differences contribute to overall inequality. It is useful for understanding economic disparities and tracking changes over time. Unlike some measures, the Theil Index can also identify which parts of the income distribution contribute most to inequality, helping policymakers target solutions more effectively.