Gini Index

This Index measures the extent to which the distribution of income, or consumption expenditure, among individuals/households deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative percentages of recipients, starting with the poorest. 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. Thus, a Gini Index of ‘0’ shows perfect equality and an Index of 100 represents maximum inequality (see World Bank: World Development Report 1997: 261–62).