Income inequality

Rules for the exercise:

Income inequality

Income Inequality or Economic Inequality is a measure of inequality in the amount of wealth or income between individuals in a given company. In its fundamental principle, it is a measure of poverty, well-being, and redistribution within tax or social systems.

We can measure income inequality with a Gini coefficient, which is a dimensionless number between 0 and 1.

• Zero means perfect income equality, where everyone has the same income.
• One means perfect inequality, one person has all the income in the state and the others have nothing.

The higher the index, the greater the income inequality in the country. Conversely, the smaller the index, the greater the income equality.

Data source:

• World Bank Gini coefficient estimation