To offer two hypothetical examples, if a nation were to have absolute income equality, with every person earning the same amount, its Gini score would be 0 (0%). Explaining the Gini coefficientĭeveloped by Italian statistician Corrado Gini in 1912, the Gini coefficient ranges from 0 to 1, but is often written as a percentage. These include slower GDP growth, reduced income mobility, greater household debt, political polarization, and higher poverty rates. A country's Gini coefficient is important because it helps identify high levels of income inequality, which can have several undesirable political and economic impacts. The Gini coefficient, also called the Gini index or Gini ratio, is the most commonly used measure of income distribution-simply put, the higher the Gini coefficient, the greater the gap between the incomes of a country's richest and poorest people.
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