Gini - coefficient Flashcards
What is the Gini - coefficient?
A technique used to show regional income differences. It has values between 0 and 1.0
What does a low Gini - coefficient indicate?
A more equal income distribition
What does a high Gini - coefficient indicate?
A more unequal income distribution
What does a Gini - coefficient of 0 show?
Perfect equality - everyone has the same income
What does a Gini - coefficient of 1 show?
Perfect inequality - One person has all the income
What is the difference between the regional income gap in rich countries and in poor countries?
Rich countries have a lower regional income gap. Poor countries have a high regional income gap.
How does residence affect inequality within a country?
There are disparities between rural and urban areas
How does ethnicity affect inequality within a country?
Minority ethnic groups in cities may be segregated.
In some countries bigger tribes are favoured, and the president often comes from this tribe
How does employment affect inequality within a country?
Formal employees have more income than informal employees. Educated and skilled people get better jobs and a better income.
What else affects inequality within a country?
Land ownership
