Open main menu
Home
Random
Recent changes
Special pages
Community portal
Preferences
About Wikipedia
Disclaimers
Incubator escapee wiki
Search
User menu
Talk
Dark mode
Contributions
Create account
Log in
Editing
Gini coefficient
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
===Relative, not absolute=== The Gini coefficient is a relative measure. The Gini coefficient of a developing country can rise (due to increasing inequality of income) even when the number of people in absolute poverty decreases.<ref>{{cite web|title=Dramatic Poverty Reduction in the Third World: Prospects and Needed Action|first=John W.|last=Mellor|publisher=International Food Policy Research Institute|date=2 June 1989|pages=18β20|url=http://pdf.usaid.gov/pdf_docs/PNABK503.pdf |archive-url=https://web.archive.org/web/20120803160551/http://pdf.usaid.gov/pdf_docs/PNABK503.pdf |archive-date=2012-08-03 |url-status=dead}}</ref> This is because the Gini coefficient measures relative, not absolute, wealth. Gini coefficients are simple, and this simplicity can lead to oversights and can confuse the comparison of different populations; for example, while both Bangladesh (per capita income of $1,693) and the Netherlands (per capita income of $42,183) had an income Gini coefficient of 0.31 in 2010,<ref name=undp2010a>{{cite web|title=The Real Wealth of Nations: Pathways to Human Development (2010 Human Development Report β see Stat Tables)|pages=152β156|publisher=United Nations Development Program|year=2011|url=http://hdr.undp.org/en/reports/global/hdr2010/chapters/}}</ref> the quality of life, economic opportunity and absolute income in these countries are very different, i.e. countries may have identical Gini coefficients, but differ greatly in wealth. Basic necessities may be available to all in a developed economy, while in an undeveloped economy with the same Gini coefficient, basic necessities may be unavailable to most or unequally available due to lower absolute wealth.
Edit summary
(Briefly describe your changes)
By publishing changes, you agree to the
Terms of Use
, and you irrevocably agree to release your contribution under the
CC BY-SA 4.0 License
and the
GFDL
. You agree that a hyperlink or URL is sufficient attribution under the Creative Commons license.
Cancel
Editing help
(opens in new window)