Gini Coefficient

What is the Gini Coefficient?

The Gini coefficient is a commonly-used measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1: the higher the number, the greater the degree of income inequality.

1. Developed Countries: Generally, developed countries tend to have lower Gini coefficients, indicating relatively lower income or wealth inequality. For example, countries such as Sweden, Norway, Finland, and Denmark have traditionally shown lower Gini coefficients, typically below 0.30.
2. Emerging Economies: Gini coefficients in emerging economies tend to be higher compared to developed countries, reflecting greater income or wealth disparities. Countries like South Africa, Brazil, Mexico, and China have historically had Gini coefficients ranging from 0.40 to 0.50.
3. Developing Countries: Developing countries often exhibit higher levels of income or wealth inequality. Gini coefficients in these countries can vary significantly based on factors such as economic structure, social policies, and political stability. Some developing countries may have Gini coefficients above 0.50 or even closer to 1.00. However, it's important to consider country-specific data for accurate and up-to-date information.