The Gini coefficient is a measure of economic inequality, ranging from 0 to 1, calculated using the Lorenz curve. The document provides examples of Gini coefficients for several countries, indicating that a coefficient closer to 1 signifies higher inequality. For instance, Singapore has a Gini coefficient of 0.425, highlighting significant economic disparity.

1. Gini Coefficient Fact Sheet

2. 1 Overview A number between zero and one.

3. 2 Calculation The Lorenz Curve is employed to illustrate the calculation of Gini Coefficient. Suppose there is a hundred families. These families are arranged in ascending income. The Lorenz curve is constructed by plotting the cumulative share of household on the horizontal axis and cumulative share of household income on the vertical axis. Gini Index is equals to Area A divided by Area A and B

4. 3 Examples The nearer a country’s Gini Coefficient is to 1, the more serious a country’s economic inequality. Places Gini Coefficient Survey Year Australia 0.352 1994 Canada 0.331 1998 France 0.327 1995 Germany 0.283 2000 Japan 0.249 1993 Singapore 0.425 1998