Friday, January 28, 2011

Inequality and income distribution

Income distribution is how a nation’s total economy is distributed amongst its population.
The distribution of income within a community may be represented by the Lorenz curve.
The Lorenz curve is closely associated with measures of income inequality, such as the Gini coefficient.

The Gini coefficient is a measure of the inequality of a distribution, a value of 0 expressing total equality and a value of 1 maximal inequality. It is commonly used as a measure of inequality of income or wealth.Worldwide, Gini coefficients for income range from approximately 0.23 (Sweden) to 0.70 (Namibia) although not every country has been assessed.



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