This preview shows page 1. Sign up to view the full content.
Unformatted text preview: the gap between two countries could be getting larger, however, inequality coes not increase if the ratio is the same Gini coefficient 1. Definition Gini is a measure of inequality within a country. It captures the idea that inequality is about differences in proportions and not differences in gaps. A lower Gini coefficient meanst A higher Gini coefficient means 2. Example--we can study how globalization may have increased inequality in developing countries. In fact, the index allows for comparison among any population, showing inequality within developed countries like the U.S. as well. The Gini coefficient is used as a measure of inequality in income or wealth. he coefficient varies from zero to one and this ratio is formulated by dividing A by A+B. A being the area above the Lorenz Curve and B being the area below it....
View Full Document
- Spring '11