In economics, the Gini coefficient, also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income inequality or the wealth inequality within a nation or a social group. The Gini coefficient was developed by the statistician and sociologist Corrado Gini.
There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income and wealth inequality measured using the distribution of wealth. Besides economic inequality between countries or states, there are important types of economic inequality between different groups of people.
Social mobility is the movement of individuals, families, households, or other categories of people within or between social strata in a society. It is a change in social status relative to one's current social location within a given society. This movement occurs between layers or tiers in an open system of social stratification. Open stratification systems are those in which at least some value is given to achieved status characteristics in a society. The movement can be in a downward or upward direction. Markers for social mobility, such as education and class, are used to predict, discuss, and learn more about an individual or a group's mobility in society.
In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes economic inequality which is a concern in almost all countries around the world.
Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income and economic inequality among the participants in a particular economy, such as that of a specific country or of the world in general. While different theories may try to explain how income inequality comes about, income inequality metrics simply provide a system of measurement used to determine the dispersion of incomes. The concept of inequality is distinct from poverty and fairness.
Social stratification refers to a society's categorization of its people into groups based on socioeconomic factors like wealth, income, race, education, ethnicity, gender, occupation, social status, or derived power. As such, stratification is the relative social position of persons within a social group, category, geographic region, or social unit.
Geographic mobility is the measure of how populations and goods move over time. Geographic mobility, population mobility, or more simply mobility is also a statistic that measures migration within a population. Commonly used in demography and human geography, it may also be used to describe the movement of animals between populations. These moves can be as large scale as international migrations or as small as regional commuting arrangements. Geographic mobility has a large impact on many sociological factors in a community and is a current topic of academic research. It varies between different regions depending on both formal policies and established social norms, and has different effects and responses in different societies. Population mobility has implications ranging from administrative changes in government and impacts on local economic growth to housing markets and demand for regional services.
International inequality refers to inequality between countries, as compared to global inequality, which is inequality between people across countries. International inequality research has primarily been concentrated on the rise of international income inequality, but other aspects include educational and health inequality, as well as differences in medical access. Reducing inequality within and among countries is the 10th goal of the UN Sustainable Development Goals and ensuring that no one is left behind is central to achieving them. Inequality can be measured by metrics such as the Gini coefficient.
Economic mobility is the ability of an individual, family or some other group to improve their economic status—usually measured in income. Economic mobility is often measured by movement between income quintiles. Economic mobility may be considered a type of social mobility, which is often measured in change in income.
Income inequality in the United States is the extent to which income is distributed in differing amounts among the American population. It has fluctuated considerably since measurements began around 1915, moving in an arc between peaks in the 1920s and 2000s, with a 30-year period of relatively lower inequality between 1950 and 1980.
Income in India discusses the financial state in India. With rising economic growth and prosperity, India’s income is also rising rapidly. As an overview, India's per capita net national income or NNI was around 135 thousand rupees in 2020. The per-capita income is a crude indicator of the prosperity of a country. In contrast, the gross national income at constant prices stood at over 128 trillion rupees. The same year, GNI growth rate at constant prices was around 6.6 percent. While GNI and NNI are both indicators for a country's economic performance and welfare, the GNI is related to the GDP or the gross domestic product plus the net receipts from abroad, including wages and salaries, property income, net taxes and subsidies receivable from abroad. On the other hand, the NNI of a country is equal to its GNI net of depreciation.
Social inequality occurs when resources in a given society are distributed unevenly, typically through norms of allocation, that engender specific patterns along lines of socially defined categories of persons. It is the differentiation preference of access of social goods in the society brought about by power, religion, kinship, prestige, race, ethnicity, gender, age, sexual orientation, and class. Social inequality usually implies the lack of equality of outcome, but may alternatively be conceptualized in terms of the lack of equality of access to opportunity. The social rights include labor market, the source of income, health care, and freedom of speech, education, political representation, and participation.
Income inequality in the Philippines is the extent to which income, most commonly measured by household or individual, is distributed in an uneven manner in the Philippines.
China's current mainly market economy features a high degree of income inequality. According to the Asian Development Bank Institute, “before China implemented reform and opening-up policies in 1978, its income distribution pattern was characterized as egalitarian in all aspects.” At this time, the Gini coefficient for rural – urban inequality was only 0.16. As of 2012, the official Gini coefficient in China was 0.474, although that number has been disputed by scholars who “suggest China’s inequality is actually far greater.” A study published in the PNAS estimated that China's Gini coefficient increased from 0.30 to 0.55 between 1980 and 2002.
Brazil has been tackling problems of income inequality despite high rates of growth. Its GDP growth in 2010 was 7.5%. In recent decades, there has been a decline in inequality for the country as a whole. Brazil's GINI coefficient, a measure of income inequality, has slowly decreased from 0.596 in 2001 to 0.543 in 2009. However, the numbers still point to a rather significant problem of income disparity.
Socioeconomic mobility in the United States refers to the upward or downward movement of Americans from one social class or economic level to another, through job changes, inheritance, marriage, connections, tax changes, innovation, illegal activities, hard work, lobbying, luck, health changes or other factors.
The "Great Gatsby Curve" is the positive empirical relationship between cross-sectional income inequality and persistence of income across generations. The scatter plot shows the relationship between income inequality and intergenerational income mobility. This chart was introduced by late professor and Chairman of the Council Economic Advisers Alan Krueger during his speech at the Center for American Progress in 2012. and the President's Economic Report to Congress.
Effects of income inequality, researchers have found, include higher rates of health and social problems, and lower rates of social goods, a lower population-wide satisfaction and happiness and even a lower level of economic growth when human capital is neglected for high-end consumption. For the top 21 industrialised countries, counting each person equally, life expectancy is lower in more unequal countries. A similar relationship exists among US states.
The spoon class theory refers to the idea that individuals in a country can be classified into different socioeconomic classes based on the assets and income level of their parents, and as a consequence, one's success in life depends entirely on being born into a wealthy family. The term appeared in 2015 and was first widely used among online communities in South Korea.
Poverty in Norway had been declining from World War II until the Global Financial Crisis. It is now increasing slowly, and is significantly higher among immigrants from the Middle East and Africa. Before an analysis of poverty can be undertaken, the definition of poverty must first be established, because it is a subjective term. The measurement of poverty in Norway deviates from the measurement used by the OECD. Norway traditionally has been a global model and leader in maintaining low levels on poverty and providing a basic standard of living for even its poorest citizens. Norway combines a free market economy with the welfare model to ensure both high levels of income and wealth creation and equal distribution of this wealth. It has achieved unprecedented levels of economic development, equality and prosperity.
