About the Accuracy of Gini Index for Measuring the Poverty
AbstractThe Gini index is often used to measure the income inequality presented inside a specified group of individuals and sometimes also for evaluating the “poverty” degree of this population. In this article we show that Gini’s index is not always so adequate to measure the poverty level of an analyzed population. More precisely, we’ll get two very different income distributions which finally give the same value for Gini’s index. Having in mind this aspect, we recommend with priority to use the Gini index only together with other similar or complementary poverty indicators to evaluate the poverty level of a given population.
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Bibliographic InfoArticle provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.
Volume (Year): (2011)
Issue (Month): 3 (September)
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More information through EDIRC
measurement and analysis of poverty; Gini index; Lorenz curve; income distribution; inequality index;
Find related papers by JEL classification:
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
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