Quick Definition

The Gini Index, or Gini coefficient, is a statistical measure used to gauge the distribution of income or wealth within a population, indicating the level of inequality.

Formula

Examples

• 1A country with perfect income equality has a Gini Index of 0, while one with maximum inequality scores a 1.
• 2During economic assessments, a nation's Gini Index might rise, indicating increasing income disparity among its citizens.
• 3Comparative studies of Gini coefficients can reveal trends in inequality across different regions or over time.
• 4Policymakers use the Gini Index to design and evaluate the effectiveness of economic interventions aimed at reducing inequality.

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