The more unequal a country's income distribution, the higher its Gini index, e.g., a Sub … Income distribution and Gini indexes for high-income economies are calculated directly from the Luxembourg Income Study database, using an estimation method consistent with that applied for developing countries. This site uses cookies to optimize functionality and give you the best possible experience. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. For more information and methodology, please see PovcalNet (, Poverty headcount ratio at national poverty lines (% of population), Poverty gap at $3.20 a day (2011 PPP) (%), Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population), Multidimensional poverty headcount ratio (% of total population), Multidimensional poverty headcount ratio, male (% of male population), Multidimensional poverty index, children (population ages 0-17) (scale 0-1), Poverty headcount ratio at $5.50 a day (2011 PPP) (% of population), Multidimensional poverty headcount ratio, household (% of total households), International Comparison Program & Purchasing Power Parity, International Household Survey Network (IHSN), Trust Fund for Statistical Capacity Building, iresearch.worldbank.org/PovcalNet/index.htm. Income inequality has both political and economic impacts such as slower GDP growth, reduced income mobility, greater household debt, political polarization, and higher poverty rates.
Survey year is the year in which the underlying household survey data were collected or, when the data collection period bridged two calendar years, the year in which most of the data were collected. In South Africa, the richest 10% hold 71% of the wealth, while the poorest 60% hold just 7% of the wealth. World Bank staff have made an effort to ensure that the data are as comparable as possible. In addition, the definitions of income used differ more often among surveys.
The Gini coefficient ranges from 0 (0%) to 1 (100%), with 0 representing perfect equality and 1 representing perfect inequality. Find Out, Online tool for visualization and analysis. A higher Gini coefficient means greater inequality. North America Some of the world’s poorest countries, such as the Central African Republic, have some of the highest Gini coefficients (61.3 in this case). This is a list of countries or dependencies by income inequality metrics, including Gini … Differences among countries in these respects may bias comparisons of distribution. In South Africa, the richest 10% hold 71% of the wealth, while the poorest 60% hold just 7% of the wealth. Income from black market economic activity is not included. Inequality is generally lower in European nations than it is in non-European nations. Oceania If one resident earned all of the income in a nation and the rest earned zero, the Gini coefficient would be 1. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. The countries with the highest Gini coefficients are: South Africa is one of the most unequal countries in the world, with a Gini coefficient of 0.625.
According to World Bank’s Poverty and Shared Prosperity 2016 report, the Gini coefficient saw a sustained growth during the 19th and 20th centuries. The Lorenz curve plots the percentiles of the population on the horizontal axis of the graph according to income or wealth, whichever is being measured.
Gini index (World Bank estimate) World Bank, Development Research Group. Definition: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. And individuals differ in age and consumption needs. Statistical Concept and Methodology: The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Wherever possible, consumption has been used rather than income. Mathematically, the Gini coefficient is defined based on the Lorenz curve. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. | | First, the surveys can differ in many respects, including whether they use income or consumption expenditure as the living standard indicator. Central America & the Caribbean It is possible for two different Lorenz curves to give rise to the same Gini coefficient.
For more information and methodology, please see PovcalNet (http://iresearch.worldban, See also: Thematic map, Time series comparison, More rankings: Data on the distribution of income or consumption come from nationally representative household surveys.
Furthermore it is possible for the Gini coefficient of a developing country to rise (due to increasing inequality of income) while the number of people in absolute poverty decreases. The Gini coefficient, sometimes called the Gini Index or Gini ratio, is a statistical measure of distribution intended to represent the income or wealth distribution of a nation. World In 2015, the top 1% of earners in the United States averaged 40 times more income than the bottom 90%. In 2005, the Gini coefficient was even higher at 0.650. The data refer to 2010-2017. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. General Comments: The World Bank’s internationally comparable poverty monitoring database now draws on income or detailed consumption data from more than one thousand six hundred household surveys across 164 countries in six regions and 25 other high income countries (indu, Note: This page was last updated on December 28, 2019, Home | About | Search | Site Map | Blog | Indicadores en Español. | This is a list of countries ranked by income inequality among individuals or households. The cumulative income or wealth of the population is plotted on the vertical axis. The Gini coefficient on disposable income—sometimes referred to as after-tax Gini coefficient—is calculated on income after taxes and tr… Many of these low-wage workers have no sick days, pension, or health insurance. This is because the Gini coefficient measures relative, not absolute, wealth. The Gini coefficient on market income—sometimes referred to as a pre-tax Gini coefficient—is calculated on income before taxes and transfers, and it measures inequality in income without considering the effect of taxes and social spending already in place in a country.
To learn more about cookies, click here. Limitations and Exceptions: Gini coefficients are not unique. |.
Another limitation of the Gini coefficient is that it is not additive across groups, i.e. Second, households differ in size (number of members) and in the extent of income sharing among members. The Nordic countries and Central Eastern European countries are among the most equal countries. Otherwise, shares have been estimated from the best available grouped data. The United States has a Gini coefficient of 0.485, the highest it has been in 50 years according to the United States Census Bureau.
Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. Additionally, due to limitations such as reliable GDP and income data, the Gini index may overstate income inequality and be inaccurate.
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In 1820, the Gini coefficient was 0.50 and in 1980 and 1992, the figure was 0.657. For further details on the estimation method for low- and middle-income economies, see Ravallion and Chen (1996). Some of the world's poorest countries (Central African Republic) have some of the world's highest Gini coefficients (61.3), while many of the … The distribution of income is typically more unequal than the distribution of consumption.
Like other countries with higher Gini coefficients, poverty is an increasing issue.
Data are based on primary household survey data obtained from government statistical agencies and World Bank country … Middle East If every resident of a nation had the same income, the Gini coefficient would be zero. |
The distribution data have been adjusted for household size, providing a more consistent measure of per capita income or consumption. South Africa is one of the most unequal countries in the world, with a Gini coefficient of 0.625. Africa | While the Gini coefficient is a useful tool for analyzing the wealth or income distribution in a country, it should not be used as an indicator of a country’s overall wealth or income. A high-income country and a low-income country can have the same Gini coefficients.
Thus, country-level Gini coefficients cannot be aggregated into regional … | Additionally, more than half of South Africa’s population, about 55.5%, live in poverty, earning less than $83 per month. Consumption is usually a much better welfare indicator, particularly in developing countries. South America
Asia Below is a table of each country’s Gini coefficient. In the U.S. about 33 million workers earn less than $10 per hour, putting a family of four below the poverty level. Gini coefficients of income are calculated on market income as well as disposable income basis. Income inequality is defined by GINI index between 0 and 1, where 0 corresponds with perfect equality and 1 corresponds with absolute inequality. | | Two sources of non-comparability should be noted for distributions of income in particular. Source: World Bank, Development Research Group. Many European countries have some of the lowest Gini coefficients, such as Slovakia, Slovenia, Sweden, Ukraine, Belgium, and Norway. No adjustment has been made for spatial differences in cost of living within countries, because the data needed for such calculations are generally unavailable. Data and research on social and welfare issues including families and children, gender equality, GINI coefficient, well-being, poverty reduction, human capital and inequality., Gini coefficients, poverty rates, income, etc.