Economics Online Statistics Home Definitions Videos Quizzes Questions

The Gini co-efficient

News


Gender pay gap

80% of UK companies and public sectors organisations pay women less than men.

Read more

Gini co-efficient

The gini co-efficient is a measure of inequality in an economy - the higher the value, the greater the inequality.

It can be derived by comparing areas on a Lorenz curve, as follows:

Gini co-efficient

If there is a perfectly equal distribution of income the whole area will be B, hence A/A + B will give us zero. When there is perfect inequality, the whole area will be A, hence A/A+B give the value of one. So the higher the number between zero and one, the greater the inequality.

Read more:


WTO rules

What exactly is the 'most favoured nation' rule?

Read more
Read more
Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

Read more
Read more
Read more
Read more
Customs unions

Costs and benefits of customs unions.

Read more
New materials

Multiple choice papers for Paper Three.

Read more
Savings ratio

Savings ratio falls to lowest level on record.

Read more