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The Gini Coefficient and Personal Inequality Measurement

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  • James Davies

Abstract

The Gini coefficient is based on the sum of pairwise income differences. For an individual, differences vis-à-vis poorer people represent advantage, and those versus richer people deprivation. Any weighted average of deprivation and advantage generates a “Gini admissible” personal inequality index. The mean value of such an index across individuals equals the Gini coefficient. Properties of the personal indexes explain the differing sensitivity of the Gini coefficient to inequality in various ranges of the income distribution. Applications to the Kuznets transformation in developing countries, to polarization in advanced countries and to broad increases or decreases in income dispersion are explored.

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  • James Davies, 2016. "The Gini Coefficient and Personal Inequality Measurement," CESifo Working Paper Series 5961, CESifo.
    • Handle: RePEc:ces:ceswps:_5961
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    References listed on IDEAS

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    Cited by:

    1. Conchita D'Ambrosio & Andrew Clark, 2018. "Economic inequality and subjective well-being across the world," WIDER Working Paper Series 170, World Institute for Development Economic Research (UNU-WIDER).
    2. Andrew E. Clark & Conchita D'Ambrosio, 2018. "Economic inequality and subjective well-being across the world," WIDER Working Paper Series wp-2018-170, World Institute for Development Economic Research (UNU-WIDER).
    3. Michelle Acampora & Conchita D'Ambrosio & Markus M. Grabka, 2020. "Income Distribution and the Fear of Crime: Evidence from Germany," Working Papers 523, ECINEQ, Society for the Study of Economic Inequality.
    4. Andrew E. Clark & Conchita D'Ambrosio, 2017. "Living conditions and well-being: Evidence from African countries," WIDER Working Paper Series wp-2017-209, World Institute for Development Economic Research (UNU-WIDER).
    5. Andrew E. Clark & Conchita D’Ambrosio, 2017. "Living conditions and well-being: Evidence from African countries," WIDER Working Paper Series 209, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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