Which question would most likely be studied using the gini index. The gini coefficient increased by 24 per cent in china, 16 per cent in india, and 4. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. Gini index inequality of income distribution country. The gini index is the most widely used measure of inequality see map above. The top 5 countries also includes namibia, sri lanka, china, and zambia. Finance statistics manual gfsm 2001 system are debt, except for.
Of the major developed and emerging economies in 2017, brazil was the most unequal with the a gini index score of 53. Even in asia, where aggregate inequality has been on the rise, there are nonetheless a few countries where inequality is defying the regional trend. Poverty, inequality, and conflict in developing countries. The gini index is not easily decomposable or additive across groups. Global, intercountry, and within countries zia qureshi 1 over the last three decades, inequality between countries has decreased while inequality within. The country show in the pie graph is probably a about 45 tertiary, 15 secondary, a small sliver primary.
The index is based on the gini coefficient, a statistical dispersion measurement that ranks income distribution on a scale between 0 and 1. The available evidence also suggests that many countries in africa and the middle east experienced an inequality drop in the 1990s2000s. Of course, a global overview masks variations over time and between countries. The maximum gini index 1 would mean that all the income belongs to one country. Impact of income inequality on life expectancy in a highly. The gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality where everyone has the same income and 1 corresponds with perfect inequality where one person has all the incomeand everyone else has no income. There are a number of ways in which one can depict the distribution of some magnitude e.
Using a panel for 32 developed countries spanning the last four decades, our results indicate that the predictions of the stolpersamuelson theorem concerning the effects of international trade on income inequality find support in the data if we concentrate on imports from developing countries as a trade measure, as theory would imply. That is, the total gini of society is not equal to the sum of the gini coefficients of its subgroups. The gini index is a summary statistic that measures how equitably a resource is distributed in a population. Gini coefficient measures the inequality of wealth distribution or income inequality in a particular area.
This statistic shows the 20 countries with the biggest inequality in income distribution in 2017 based on the gini index. To benchmark and monitor income inequality and poverty across countries, the oecd relies on a dedicated statistical database. Gini index, a quantified representation of a nations lorenz curve. This is a list of countries or dependencies by income inequality metrics, including gini coefficients. Inclusive development index weforum world economic forum. All of the nine advanced economies that are members of the g20, made up of leading developed and developing nations, saw the gini coefficient the most. The following empirical model is developed and the gini coefficient of a country is regressed on both kearney and pc indices for all 60 countries.
A global perspective prepared by era dablanorris, kalpana kochhar, frantisek ricka, nujin suphaphiphat, and evridiki tsounta with contributions from preya sharma and veronique salins1 authorized for distribution by siddharh tiwari june 2015 jel classification numbers. Income inequality and limitations of the gini index. Feb, 2020 this statistic represents the 20 countries with the greatest income distribution equality between 2010 and 2017 based on the gini index. Thus a gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. Gini index of household income inequality by development status early 1990s. Of the major developed and emerging economies in 2015, brazil was the most unequal with the a gini index score of 51. According to world banks poverty and shared prosperity 2016 report, the gini coefficient saw a sustained growth during the 19th and 20th centuries. Brazil is an exception to this general trend, as the gini coefficient decreased by 9 per cent. It discusses its characteristics and the link with another popular graphical tool of representing inequality, the lorenz curve. Accordingly, policymakers and citizens alike would benefit from having an alternative, or at least complementary.
The gini coefficient is a measure of inequality of a distribution. The more nearly equal a countrys income distribution, the lower its gini index, e. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. Gini coefficients of education world bank documents. Gini index world bank estimate from the world bank. Summary this tool addresses the most popular inequality index, the gini index. The united states, for example, is widely seen as the country.
South africa is the top country by gini index in the world. Pieter, but im concerned that youre attributing too much normative content should to the gini coefficient, which is really just a descriptive measure. Therefore, when a gini coefficient of a developing country rises, this could be misleading. Also then the gini index can be used, but as diversity is seen as the opposite notion of inequality, the gini diversity index is calculated as one minus the gini inequality index. Gini index in key developed and emerging economies in 2015. Development research group developed a software for calculating income gini, by way of estimating a continuous lorenz curve function based. How valid is international comparisons of the gini index. Gini index world bank estimate colombia world bank, development research group. Global finance magazine wealth distribution and income. It looks at the distribution of a nations income or wealth, where 0 represents complete. Gini index income distribution equality country ranking. While most developed european nations tend to have gini coefficients between 0. It is used as a gauge of economic inequality, measuring income distribution among a population. We read every letter, fax, or email we receive, and we will convey your comments to cia officials outside opa as appropriate.
Extended version of the gini index with different weighting schemes are also discussed. Mapping recent inequality trends in developing countries. Results the gini index, as the other measure of income inequality, was negatively associated with life expectancy p gini index measures the area between the lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. The inclusive development index 2018 summary and data highlights. Ranks 23rd out of 30 developed countries for inequality a comprehensive index from the world economic forum finds that for such a rich country, america isnt doing all. In addition to a selfcontained presentation of the gini. But a large part of the debate focuses on income inequality within countries, in particular within advanced economies. While most developed european nations tend to have gini coefficients between.
Why is income inequality increasing in the developed world. You may be most familiar with the gini index as a way of measuring income inequality across nations. While a perfect scenario would be that of equality in income distribution, this is not normally the case in most of the areas around the world. Including the value of governmentprovided health and education benefits makes the united states look even more unequal compared to other developed countries.
An overview of growing income inequalities in oecd countries. Nov 14, 2014 using a panel for 32 developed countries spanning the last four decades, our results indicate that the predictions of the stolpersamuelson theorem concerning the effects of international trade on income inequality find support in the data if we concentrate on imports from developing countries as a trade measure, as theory would imply. Inequalities at national level are increasing in developed and developing countries. Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. In 1912, italian sociologist and statistician corrado gini developed a means of measuring wealth distribution within societies known as the gini index or gini coefficient. A range of alternatives to the gini exist, which give different weight to dynamics across different parts of the income distribution. The office of public affairs opa is the single point of contact for all inquiries about the central intelligence agency cia.
Global, inter country, and within countries zia qureshi 1 over the last three decades, inequality between countries has decreased while inequality within. Changing income inequality by gini coefficients may be down to things such as structural changes or immigration. Cia data from the central intelligence agencys the world factbook. The gini index or gini coefficient is a statistical measure of distribution developed by the italian statistician corrado gini in 1912. Based on countries for which an inequalityadjusted human development index value is calculated. Gini coefficient in oecd countries between 1980s and late 2000s. Although it has its critics, the most widely used inequality measure remains the gini index, a synthetic measure of income or consumption inequality across the entire distribution. In oecd countries, the gini coefficient rose on average from 0.
The inclusive development index 2018 summary and data. Inequality may be broken down by population groups or income sources or in other dimensions. The gini index is a measure of a country s income inequality. In contrast, nordic countries in europesuch as finland and swedenhave a similar income per capita as that in the u. Inequality as measured by the gini and polarization do not necessarily move together. The gini coefficient measures relative and not absolute wealth. Gini index in developed and emerging economies 2017 statista. The gini coefficient, a standard measure of income inequality that ranges from 0 when everybody has identical incomes to 1 when all income goes to only one person, stood at an average of 0. Gini coefficient and lorenz curve explained towards data. According to world banks poverty and shared prosperity 2016 report, the. For example, using wage in come to assess inequality in sweden in 1976 resulted in a gini index of 43. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality. Courtesy of the census bureau, it is now available for policymap users at various geography levels from nation to census tract. Mar 06, 2019 the gini index or gini coefficient is a statistical measure of distribution which was developed by the italian statistician corrado gini in 1912.
A gini index of 0% expresses perfect equality, while index of 100% expresses maximal inequality. Inside inequality in the arab republic of egypt facts and perceptions across people, time, and space. Preliminary empirical analysis finds that, first, education inequality for most of the countries has been declining during the three decades, with a few exceptions. The gini was developed by the italian statistician corrado gini in 1912, for the purpose of rating countries by income distribution. Inequality within countries has been rising at different speeds but almost across the board among. As can be seen, the gini index of global income inequality.
Using the gini index we have to consider numerous disadvantages and problems. The measure has been in use since its development by. The most equal country in this group was germany, with a gini index of 31. As many countries have experienced and the inclusive development index data illustrate, growth is a necessary but not sufficient condition for robustly rising median living standards. The least developed countries ldcs in the world have hdi scores in the low human development tiers with hdi scores below 0. For example, the gini index a measure of the extent to which of income among individuals or. Focusing on developed countries, i present a model explaining how firms help determine rates of. Education gini could be used as one of the indicators of welfare, complementing average education attainment, health and nutrition, income per capita, and other indicators of welfare. Finally, in 1914 he developed the w ellknown index of.
Gini index of global income inequality global inequality according to concept 3 requires data for the distribution of income between households within countries that is available starting only from the mid1980s. The minimum gini index 0 would mean that the income is even distributed among all countries. Gini index world bank estimate world bank, development research group. Distribution of family income gini index measures the degree of inequality in the distribution of family income in a country. Corrado gini developed the gini coefficient in his 1912 paper variability and mutability to express a distributions difference from uniformity. Finally, the lorenz curve and the gini index are also used when one is interested in diversity, for instance the diversity of journals shown in a reference list.
Learn how the world bank group is helping countries with covid19 coronavirus. The gini coefficient, a standard measure of income inequality that ranges from 0 when everybody has identical incomes to 1 when all income goes to only one. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1. A comparison of the gini and atkinson measures of inequality. You seem to be under the impression that somebody is advocating that. It looks at the distribution of a nations income or wealth, where 0 represents complete equality and 100 total. Human development report 2019 human development reports. Income inequality among individuals is measured here by five indicators. The countries with the highest gini coefficients are.1237 421 132 226 1187 242 1331 1387 986 1438 803 385 874 1057 258 901 999 1091 1255 70 860 1451 1483 469 628 847 1322 655 204 873 806 618 573 1066 178 821 1111 726 1262 1275 170 751 241 195 1073 1138 399