Business
What is The Gini coefficient?
The Gini coefficient is a single number that measures income or wealth inequality in a group, from 0 to 1. A value of 0 means everyone has exactly equal income; 1 means one person has everything — so higher numbers mean more inequality.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains the gini coefficient.
Key things to understand
- 1It summarizes a whole population's inequality in one number.
- 20 is perfect equality; 1 is maximum inequality.
- 3Most countries fall between about 0.25 and 0.6.
- 4It allows comparing inequality between countries or over time.
- 5It doesn't show who is rich or poor, just the spread.
Frequently asked questions
- What does a Gini coefficient of 0 mean?
- Perfect equality — every person has exactly the same income or wealth. A value of 1 would mean a single person holds it all.
- What is a typical Gini coefficient?
- Most countries land roughly between 0.25 (more equal) and 0.6 (highly unequal), depending on how income is distributed.
- What are the limits of the Gini coefficient?
- It captures the spread in one number but doesn't reveal poverty levels, who holds the wealth, or how the middle compares to the extremes.