What Is the Gini Index?

The Gini index, often known as the Gini coefficient, is a measure of income distribution created by Italian economist Corrado Gini in 1912. It is frequently used to measure income distribution or, less typically, wealth distribution among a population as a measure of economic inequality. A coefficient is a number that ranges from 0 (or 0% ) to 1 (or 100% ), with 0 denoting perfect equality and 1 denoting complete inequality. Because of negative income or wealth, values greater than one are theoretically attainable.

The Gini Index is obtained by plotting income as a percentage vs population as a percentage. It is a measure of economic inequality. Starting from zero in which everyone is equal and ranging from zero to one, a larger index means incomes or wealth is more unequal.

  • Gini index is a measure of inequality in society

  • It’s a number between 0 and 1. Higher the index, higher the inequality in society