Question

What does the gini coefficient measure

Answer 1

The Gini coefficient is a measure of income inequality within a country or a population. It quantifies the extent to which income distribution deviates from perfect equality. The coefficient ranges from 0 to 1, where 0 represents perfect equality (every individual has an equal share of income) and 1 represents maximum inequality (one individual has all the income while others have none). A Gini coefficient closer to 1 indicates higher income inequality, while a coefficient closer to 0 indicates lower income inequality.