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Gini coefficient


The Gini coefficient is a measure of income inequality derived from the Lorenz curve, which plots cumulative shares of the population, from the poorest upwards, against the cumulative share of incomes that they receive.

The Gini coefficient lies between 0 and 1. A coefficient equal to 0 means that the incomes are equally distributed, that is, all the individuals have the same income. At the other extreme, if the richest unit received all income, then the Gini coefficient would be equal to 1 ("perfect inequality").