Definition Gini coefficient
The Gini coefficient is a widely-used measure of dispersion that ranges between 0 and 1 (or 100%). This coefficient is often used in the context of income distribution.
If every person in a country earns the exact same salary, the income is evenly distributed and the Gini coefficient is 0. If only one person in a country earns an income and no one else, the income is unevenly distributed and the Gini coefficient is 1 (100%). In reality, countries typically have a Gini coefficient of income distribution between 0.3 (30%) and 0.75 (75%).
Please note that the definitions in our statistics encyclopedia are simplified explanations of terms. Our goal is to make the definitions accessible for a broad audience; thus it is possible that some definitions do not adhere entirely to scientific standards.
- Growth rate
- Gini coefficient
- Generalized least square (GLS) model