How unequal is a society? The Lorenz curve draws it and the Gini coefficient distills it to a single number between perfect equality and total concentration.
Lorenz Curve & GiniLive
measuring inequality
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The Lorenz curve plots the cumulative share of income against the cumulative share of population, from poorest to richest. Perfect equality is the diagonal; the more the curve bows below it, the more unequal the distribution. The Gini coefficient is twice the area between them — 0 is total equality, 1 is one person owning everything.
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How it works
The Lorenz curve plots the cumulative share of income against the cumulative share of population from poorest to richest. The diagonal is perfect equality; the more the curve sags below it, the more unequal the distribution. The Gini coefficient is twice the area between them — 0 for total equality, 1 for one person holding everything. It is the standard measure of inequality.
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