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Gini coefficient
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== Of social development == The Gini coefficient is widely used in fields as diverse as sociology, economics, health science, ecology, engineering, and agriculture.<ref name="Sadras 2004 303β310">{{cite journal |last1=Sadras |first1=V. O. |last2=Bongiovanni |first2=R. |year=2004 |title=Use of Lorenz curves and Gini coefficients to assess yield inequality within paddocks |journal=Field Crops Research |volume=90 |issue=2β3 |pages=303β310 |doi=10.1016/j.fcr.2004.04.003 |bibcode=2004FCrRe..90..303S }}</ref> For example, in social sciences and economics, in addition to income Gini coefficients, scholars have published education Gini coefficients and opportunity Gini coefficients. === Education === Education Gini index estimates the inequality in education for a given population.<ref>{{cite book|first1=Vinod|last1=Thomas|first2=Yan|last2=Wang|first3=Xibo|last3=Fan|title=Measuring Education Inequality: Gini Coefficients of Education |date=January 2001|publisher=The World Bank|doi=10.1596/1813-9450-2525|url=http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2001/02/17/000094946_01020605310354/Rendered/PDF/multi_page.pdf|url-status=dead|archive-url=https://web.archive.org/web/20130605143955/http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2001/02/17/000094946_01020605310354/Rendered/PDF/multi_page.pdf|archive-date=5 June 2013|series=Policy Research Working Papers|hdl=10986/19738|citeseerx=10.1.1.608.6919|s2cid=6069811}}</ref> It is used to discern trends in social development through educational attainment over time. A study across 85 countries by three [[World Bank]] economists, Vinod Thomas, Yan Wang, and Xibo Fan, estimated Mali had the highest education Gini index of 0.92 in 1990 (implying very high inequality in educational attainment across the population), while the United States had the lowest education inequality Gini index of 0.14. Between 1960 and 1990, China, India and South Korea had the fastest drop in education inequality Gini Index. They also claim education Gini index for the United States slightly increased over the 1980β1990 period. Though India's education Gini Index has been falling from 1960 through 1990, most of the population still has not received any education, while 10 percent of the population received more than 40% of the total educational hours in the nation. This means that a large portion of capable children in the country are not receiving the support necessary to allow them to become positive contributors to society. This will lead to a deadweight loss to the national society because there are many people who are underdeveloped and underutilized.<ref>{{Cite book |last1=Thomas |first1=Vinod |url=https://books.google.com/books?id=cVkVi5bzEQkC&dq=gini+coefficient&pg=PA3 |title=Measuring Education Inequality: Gini Coefficients of Education |last2=Wang |first2=Yan |last3=Fan |first3=Xibo |date=2001 |publisher=World Bank Publications |language=en}}</ref> === Opportunity === Similar in concept to the Gini income coefficient, the Gini opportunity coefficient measures inequality in opportunities.<ref name=roemer06>{{cite report|title=Economic development as opportunity equalization|first=John E.|last=Roemer|date=September 2006|publisher=Yale University|ssrn=931479|citeseerx=10.1.1.403.4725}}</ref><ref>{{cite journal|title=Generalized Gini Indices of Equality of Opportunity|last=Weymark|first=John|journal=Journal of Economic Inequality|volume=1|year=2003|pages=5β24|doi=10.1023/A:1023923807503|issue=1|s2cid=133596675}}</ref><ref>{{cite web|title=Measurement of Inequality in Human Development β A Review|last=Kovacevic|first=Milorad|publisher=United Nations Development Program|date=November 2010|url=http://hdr.undp.org/en/reports/global/hdr2010/papers/HDRP_2010_35.pdf|archive-url=https://web.archive.org/web/20110923141455/http://hdr.undp.org/en/reports/global/hdr2010/papers/HDRP_2010_35.pdf|archive-date=23 September 2011}}</ref> The concept builds on [[Amartya Sen]]'s suggestion<ref>{{cite journal|title=The contributions of Amartya Sen to Welfare Economics|first=Anthony B.|last=Atkinson|journal=The Scandinavian Journal of Economics|volume=101|issue=2|pages=173β190|year=1999|url=http://ias7.berkeley.edu:80/academics/courses/center/fall2007/sehnbruch/atkinson%201998%20contributions%20of%20sen%20to%20welf%20economics.pdf|archiveurl=https://web.archive.org/web/20140513233332/http://ias7.berkeley.edu:80/academics/courses/center/fall2007/sehnbruch/atkinson%201998%20contributions%20of%20sen%20to%20welf%20economics.pdf |archivedate=2014-05-13|doi=10.1111/1467-9442.00151|jstor=3440691}}{{cbignore|bot=medic}}</ref> that inequality coefficients of social development should be premised on the process of enlarging people's choices and enhancing their capabilities, rather than on the process of reducing income inequality. Kovacevic, in a review of the Gini opportunity coefficient, explained that the coefficient estimates how well a society enables its citizens to achieve success in life where the success is based on a person's choices, efforts and talents, not their background defined by a set of predetermined circumstances at birth, such as gender, race, place of birth, parent's income and circumstances beyond the control of that individual. In 2003, Roemer<ref name=roemer06 /><ref>{{cite journal|last1=Roemer|first1=John E.|title=To what extent do fiscal regimes equalize opportunities for income acquisition among citizens?|journal=Journal of Public Economics|volume=87|issue=3β4|date=March 2003|pages=539β565|doi=10.1016/S0047-2727(01)00145-1|last2=Aaberge|first2=Rolf|last3=Colombino|first3=Ugo|last4=Fritzell|first4=Johan|last5=Jenkins|first5=Stephen P|last6=Lefranc|first6=Arnaud|last7=Marx|first7=Ive|last8=Page|first8=Marianne|last9=Pommer|first9=Evert|display-authors=1|citeseerx=10.1.1.414.6220}}</ref> reported Italy and Spain exhibited the largest opportunity inequality Gini index amongst advanced economies. === Income mobility === In 1978, [[Anthony Shorrocks]] introduced a measure based on income Gini coefficients to estimate income mobility.<ref>{{Cite journal | last = Shorrocks | first = Anthony | title = Income inequality and income mobility | journal = Journal of Economic Theory | volume = 19 | issue = 2 | pages = 376β393 | doi = 10.1016/0022-0531(78)90101-1 | date = December 1978 }}</ref> This measure, generalized by Maasoumi and Zandvakili,<ref>{{cite journal|first1=Esfandiar|last1=Maasoumi|first2=Sourushe|last2=Zandvakili| year=1986|title=A class of generalized measures of mobility with applications|journal=Economics Letters|volume= 22|issue=1|pages= 97β102|doi=10.1016/0165-1765(86)90150-3}}</ref> is now generally referred to as [[Shorrocks index]], sometimes as Shorrocks mobility index or Shorrocks rigidity index. It attempts to estimate whether the income inequality Gini coefficient is permanent or temporary and to what extent a country or region enables economic mobility to its people so that they can move from one (e.g., bottom 20%) income quantile to another (e.g., middle 20%) over time. In other words, the Shorrocks index compares inequality of short-term earnings, such as the annual income of households, to inequality of long-term earnings, such as 5-year or 10-year total income for the same households. Shorrocks index is calculated in several different ways, a common approach being from the ratio of income Gini coefficients between short-term and long-term for the same region or country.<ref name=kss2010>{{cite journal|title=Earnings Inequality and Mobility in the United States: Evidence from Social Security Data Since 1937|first1=Wojciech|last1=Kopczuk |first2=Emmanuel|last2=Saez |first3=Jae|last3=Song |journal=The Quarterly Journal of Economics|year=2010|volume= 125|issue=1|pages= 91β128|doi=10.1162/qjec.2010.125.1.91|jstor=40506278|url=http://emlab.berkeley.edu/~saez/kopczuk-saez-songQJE09SSA.pdf |archive-url=https://web.archive.org/web/20130513122750/http://emlab.berkeley.edu/~saez/kopczuk-saez-songQJE09SSA.pdf |archive-date=2013-05-13 |url-status=live}}</ref> A 2010 study using social security income data for the United States since 1937 and Gini-based Shorrock's indices concludes that income mobility in the United States has had a complicated history, primarily due to the mass influx of women into the American labor force after World War II. Income inequality and income mobility trends have been different for men and women workers between 1937 and the 2000s. When men and women are considered together, the Gini coefficient-based Shorrocks index trends imply long-term income inequality has been substantially reduced among all workers, in recent decades for the United States.<ref name=kss2010 /> Other scholars, using just 1990s data or other short periods have come to different conclusions.<ref>{{cite journal|title=Cross-national Differences in Income Mobility: Evidence from Canada, the United States, Great Britain and Germany |first=Wen-Hao|last=Chen|s2cid=62886186|journal=Review of Income and Wealth|volume=55|issue=1|pages=75β100|date= March 2009|doi=10.1111/j.1475-4991.2008.00307.x}}</ref> For example, Sastre and Ayala conclude from their study of income Gini coefficient data between 1993 and 1998 for six developed economies that France had the least income mobility, Italy the highest, and the United States and Germany intermediate levels of income mobility over those five years.<ref>{{cite web|title=Europe vs. The United States: Is There a Trade-Off Between Mobility and Inequality?|first1=Mercedes|last1=Sastre|first2=Luis|last2=Ayala |publisher=Institute for Social and Economic Research, University of Essex|url=http://www.ucm.es/info/econeuro/documentos/documentos/dt192002.pdf |archive-url=https://web.archive.org/web/20060612200520/http://www.ucm.es/info/econeuro/documentos/documentos/dt192002.pdf |archive-date=2006-06-12 |url-status=live|year=2002}}</ref>
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