Gini coefficient
Definition. The Gini coefficient is a statistical measure of income inequality within a population, ranging from zero to one. A value of zero represents perfect equality where everyone has the same income, while a value of one represents perfect inequality where one person receives all the income.
It is derived from the Lorenz curve and equals the area between the line of perfect equality and the Lorenz curve divided by the total area beneath the line of equality.
This term belongs to The Gini Coefficient in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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