Explain what is measured by the Gini coefficient

Question

What will be an ideal response?

Answer 1

The World Bank uses the Gini coefficient to measure income inequality. The

coefficient measures the extent or degree of income inequality within a country. The

coefficient is a number between 0 and 100 . A coefficient of 0 would mean that

everyone has the same income? conversely, a coefficient of 100 would mean that one

person receives all of a country's income. Countries with extremes of wealth and

poverty have higher coefficients? these include India, Cambodia, and Namibia, for

example. Countries like Norway and Sweden have low Gini coefficients, reflecting

their low levels of income inequality.