What is a Gini coefficient OECD?
The difference in income in- equality between before and after taxes and transfers, as measured by the Gini coefficient, was the highest among OECD countries in Ireland, the Gini coefficient of disposable income before taxes and transfers was relatively high 0.58 in 2013, yet it fell to 0.31 after taxes and transfers …
What is a country’s Gini coefficient?
The Gini coefficient, also called the Gini index or Gini ratio, is the most commonly used measure of income distribution—simply put, the higher the Gini coefficient, the greater the gap between the incomes of a country’s richest and poorest people.
How do most OECD countries define poverty?
(The OECD defines poor as someone living in a household with less than half the median income, adjusted for family size.) Children and young adults are now 25% more likely to be poor than the population as a whole.
What does a Gini coefficient of 0 tell you about a country?
A Gini coefficient of zero expresses perfect equality, where all values are the same (for example, where everyone has the same income). The Gini coefficient was proposed by Gini as a measure of inequality of income or wealth.
What is Gini coefficient in statistics?
The Gini coefficient is a statistic which quantifies the amount of inequality that exists in a population. The Gini coefficient is a number between 0 and 1, with 0 representing perfect equality and 1 perfect inequality. Sometimes these statistics are reported in terms of percentages, with numbers between 0 and 100.
What is the best Gini coefficient?
GINI index (World Bank estimate) – Country Ranking
| Rank | Country | Value |
|---|---|---|
| 1 | South Africa | 63.00 |
| 2 | Namibia | 59.10 |
| 3 | Suriname | 57.60 |
| 4 | Zambia | 57.10 |
What does a Gini coefficient of 0.3 mean?
Gini index < 0.2 represents perfect income equality, 0.2–0.3 relative equality, 0.3–0.4 adequate equality, 0.4–0.5 big income gap, and above 0.5 represents severe income gap. Therefore, the warning level of Gini index is 0.4. The Gini coefficient is often used to measure income inequality.
What is poverty OECD?
Definition of. Poverty rate. The poverty rate is the ratio of the number of people (in a given age group) whose income falls below the poverty line; taken as half the median household income of the total population.
How do you explain Gini coefficient?
The Gini coefficient is equal to the area below the line of perfect equality (0.5 by definition) minus the area below the Lorenz curve, divided by the area below the line of perfect equality. In other words, it is double the area between the Lorenz curve and the line of perfect equality.
What is the Gini coefficient in simple terms?