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Economics vocabulary · Development and Inequality

Gini coefficient

Meaning in economics, with examples

/ˈdʒiːni ˌkəʊɪˈfɪʃnt/nounAdvanced term

In economics, Gini coefficient means: A number from 0 to 1 that sums up income inequality in a country: 0 means everyone has the same income, and 1 means one person has all of it.

In Turkish: Gini katsayısı

How it is used

Named after the Italian statistician Corrado Gini. It is sometimes shown on a scale of 0 to 100 (the Gini index). Reports say the Gini coefficient rose to 0.43. Rich European countries tend to have lower values than many countries in Latin America and southern Africa.

Example sentences

  1. The country's Gini coefficient fell from 0.44 to 0.40 after the tax reform.

  2. A Gini coefficient close to zero means that income is spread very evenly.

Common collocations

  • the Gini coefficient rose
  • a high Gini coefficient
  • Gini index
  • measured by the Gini coefficient
  • inequalityThe unequal distribution of income, wealth or opportunities between people or groups in a society, or between countries.
  • poverty lineThe minimum level of income considered necessary to meet basic needs in a country; people living below it are counted as poor.
  • per capitaFor each person in a population; a total divided by the number of people, as in GDP per capita or income per capita.

More terms: Development and Inequality

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This page explains English vocabulary for learners. It is not financial advice.