What does gini coefficient do?

Gini coefficient is used for [inequality] indicator.
The Gini coefficient measures the inequality of [income]distribution within a country. It varies from zero, which indicates perfect equality, with every household earning exactly the same, to one, which implies absolute inequality, with a single household earning a country’s entire income.
Latin America is the world’s most unequal region, with a Gini coefficient of around 0.5; in rich countries the figure is closer to 0.3

Gini coefficient is a statistical measure of dispersion expressed as a ratio between 0 and 1 (sometimes expressed as between 0 and 100 by multiplying by 100). A value of 0 would represent absolute inequality, whilst 1 represents full equality.

In economics, it is typically used to relate income and wealth disparity.Keep in mind that the Gini coefficient has a secondary qualitative problem insomuch as it is missing a gauge for standard of living or quality of life. So, whilst it indicates within a society the relative equality, Gini coefficients cannot be used in isolation when comparing across societies because 2 populations may have the same Gini coefficient yet not be comparable. As an example, compare Luxembourg with some of the former Soviet nations.