Jul 9, 2013

Interpreting the Gini Coeffiicent: 1 is complete equality except for 1 person.

Gini coefficient. This is the usual interpretation.
1. A score of 0 on the Gini coefficient represents complete equality.
2. A score of 1 would represent complete inequality, i.e., where one person has all the income and others have none.
0 means complete equality in sharing income (reports usually are based on income per household).
1 means complete equality in sharing 0 income, except for 1 person/household who gets everything.
The bigger the Gini coefficient, in general, the more people are poorer compared to the rich.

Gini Coeffiicent:
1 does not mean complete inequality.
1 means complete equality where everybody is equally dirt poor except for one person.

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