GINI INDEX Meaning and
Definition
-
The Gini Index is a measure of inequality or dispersion used to assess the distribution of wealth, income, or other measures of individual well-being within a population. It is widely used in economics, sociology, and other social sciences to quantify the degree of inequality in a given society or group.
The Gini Index ranges from 0 to 1, where 0 signifies perfect equality, meaning that all individuals have an equal share of the measured attribute, and 1 indicates maximum inequality, indicating that one individual possesses all the attribute while others possess none. In other words, the closer the Gini Index is to 1, the more unequal the distribution of the attribute being measured.
To calculate the Gini Index, a Lorenz curve is utilized, which plots the cumulative percentage of the population against the cumulative percentage of the attribute being measured. The Gini Index is then derived from the area between the Lorenz curve and the line of perfect equality.
Interpreting the Gini Index allows for comparisons between different populations or over time. It provides valuable insights into income distribution, poverty levels, and social disparities, allowing policymakers to identify areas of concern and implement targeted interventions. Additionally, the Gini Index can be used to evaluate the effectiveness of policies aimed at reducing inequality, such as income redistribution or welfare programs.
Common Misspellings for GINI INDEX
- fini index
- vini index
- bini index
- hini index
- yini index
- tini index
- guni index
- gjni index
- gkni index
- goni index
- g9ni index
- g8ni index
- gibi index
- gimi index
- giji index
- gihi index
- ginu index
- ginj index
- gink index
- gino index
Etymology of GINI INDEX
The word "Gini index" is named after the Italian statistician Corrado Gini. Corrado Gini was an influential figure in the field of statistics and economics, known for his contributions to the study of income distribution and inequality. In 1912, he introduced the concept of the Gini coefficient, which measures the degree of economic inequality within a population. Over time, this concept became commonly referred to as the Gini index or Gini coefficient in his honor.
Infographic
Add the infographic to your website:
