Gini Coefficient

In Community Resilience by Liza

The content for your Tab goes here. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Pellentesque pretium, nisi ut volutpat mollis, leo risus interdum arcu, eget facilisis quam felis id mauris. Ut convallis, lacus nec ornare volutpat, velit turpis scelerisque purus, quis mollis velit purus ac massa. Fusce quis urna metus. Donec et lacus et sem lacinia cursus.

Income inequality, or the extent to which income is unevenly distributed across a population, has been increasing in the United States for more than thirty years. An unequal distribution of income can undermine the fairness of political institution and the economic system. In a population with an unequal distribution of income, workers are denied a claim to the share of what they helped to produce.The impacts of income inequality have been studied by a number of economist. For example, Joseph Stiglitz has demonstrated that widely unequal societies are less efficient, less stable, and less sustainable in the long term.[i]

The gini coefficient, the most commonly used measure of inequality, measures the extent to which the distribution of income among individuals or households deviates from a perfectly equal distribution. In a perfectly equal system, the gini coefficient would be zero, with a gini coefficient of 100 would be the least equal distribution possible.

[i] Joseph Stiglitz, 2012. “The Price of Inequality: How today’s divided society endangers our future,” WW Norton & Company.