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The Gini (Gee Knee) Outside the Bottle08-12-13 | News
The Gini (Gee Knee) Outside the Bottle





According to CIA Gini calculations, the red and darker red countries are the most inequitable for income distribution.


We hear a lot about the "one percenters" in this country, but there is a statistical comparative tool called the Gini index, aka the Gini coefficient or Gini ratio, which measures inequality in frequency distributions. One use of Gini is to measure the inequality in income for a country.

Italian statistician Corrado Gini first published the Gini coefficient in a 1912 paper. Gini is based on a 0-1 scale. Imagine a fantasy country in which wealth was equally distributed, i.e., every household had the same income. In this idealistic country, the Gini index would be 0. So, the closer to 1 on the scale means a country with greater discrepancy in wealth distribution.

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For the late 2000s, the Gini ratio for the United States made it the 4th highest income inequality after taxes among the 34 Organization for Economic Cooperation and Development. The U.S. Gini was .41 in 1997, and the inequity has grown over the last decade. The Gini index can vary depending who is doing the numbers, i.e., the World Bank or the CIA, however, both entities agree the Gini ratio for the latest data for the U.S. is .45.

A few Gini indexes for income after taxes for some selected countries:

Brazil: .519
Canada: .324
China: .42
France: .293
Norway: .25
South Africa: .65
Sweden: .23

Sources: Naked Statistics: Stripping the Dread from the Data, by Charles Wheelan; CIA Gini index; World Bank Gini index.







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