This document discusses income inequality between countries and within countries. It begins by explaining the Lorenz curve, which graphs the distribution of income in a country and shows how far it deviates from perfect equality. It then defines the Gini coefficient as a number between 0 and 1 that measures inequality, where 0 represents perfect equality and 1 represents perfect inequality. The document provides instructions on how to calculate the Gini index using the areas on a Lorenz curve diagram. It includes an example of how to find the areas and check the calculation. Finally, it asks the reader to plot a Lorenz curve for the world distribution of wealth in 2013 using data from provided sources.

1. Global winners and losers of
globalisation – Income Inequality

2. What does this
image suggest
about inequality
within a
country?

4. Global winners and losers of
globalisation

5. The Lorenz Curve
• Watch this video to understand what The Lorenz
Curve is all about

6. The Lorenz curve:
The Lorenz curve represents
income distribution. The line of
equality shows what an equal
distribution would look like,
whereas he Lorenz curve shows
the actual distribution.
The greater the degree of the
bow the greater the ……………
………………………………
Annotate your diagram to show x
and y axis.

10. What is the Gini Coefficient:
• Watch this next video to see what the Gini
Coefficient is …

11. What is the Gini Coefficient:
• The Gini coefficient is a numerical value of
inequality in a country.
• The Gini coefficient is a number between 0 and 1.
• This is where 0 corresponds with perfect equality
(where everyone has the same income) and 1
corresponds with perfect inequality (where one
person has all the income—and everyone else has
zero income).
• Have a look here at some of the countries data.

12. How to calculate the Gini Index:
• The Gini Index is defined as a ratio of the areas on the
Lorenz Curve diagram.
• If the area between the Line of Equality and the Lorenz
curve is A, and the area under the Lorenz curve in B,
then the………
• Gini Index = A ÷ (A + B). The higher the coefficient
(number) the more unequal the distribution of income
will be.
• The lower value would give a more balanced
distribution of income.

13. Area A
Area B
To find the area
you count the
complete graph
squares and then
the bisected
squares and then
add them
together.
To check:
A + B is equal to
half the graph

14. Your Turn:
• Using the copy of
page 203 Numerical
and Statistical Skills
that you will find on
Showbie, plot a
Lorenz Curve for the
world distribution of
wealth in 2013.

15. Multi Speed World
• Read pages 200-202 in your Ice text book and
pages 182-183 in your Lizard.
• How extreme poverty became rarer video
• Gapminder here