Gini coefficient
Lorenz curve
Disparities resulting from :
- parental education
- ethnicity
- residence
- income
- employment
- land ownership
Gini coefficient is a measure of dispersion or inequality. It’s used to show inequality in wealth. (land distribution). It allows to analyze the changes in income inequality over time in individual countries and make comparisons between them. It ranges from 0 to 1. It is sometimes multiplied by hundred to give values from 0 to 100. A low Gini coefficient indicates a more equal distribution with zero corresponding to complete equality. Higher gini coefficients indicate more unequal distribution with 1 corresponding to complete inequality.
In general more affluent countries have a lower income group than low income countries. For example, Denmark 0.23, Namidia 0.70. However, Mongolia or Niger have also quite low Gini coefficient which Is around 0.35, but these are poor societies.
Lorenz curve is a graphic representation of the Gini coefficient, it shows the degree of inequality between two variables. (extend of income inequality in a population)
Diagram of the line in the Lorenz curve represents perfect equality in income distribution. The further the curve is a way of a diagonal, the greater the degree of income inequality.
OECD – Organization for Economic Cooperation and Development
Variation in income distribution within a country, e.g China:
Huge variations between rural and urban areas,
East, South – East and West of the country,
Gini coefficient is growing in China
Factors effecting internal disparities:
Residence: place when you were born and place where you live, it has a huge impact on the quality of life.
a) Regional differences contrasts e.g. Brazil
b) Rural and urban differences Intra-urban variations – slums 32% of population live in slums (urban poverty district)
c) Intra – urban contrast
Slum is a heavily populated urban area which is characterized by