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Economics

Income Inequality and the Gini Coefficient

Quick fact

If everyone in a country earned the same income, the Gini coefficient would be 0. But if one person took all income, it would be 1. In real countries, it's usually between 0.25 (like Denmark) and 0.63 (like South Africa).

Why this is interesting

Imagine slicing a pie and giving one person almost all of it—that's extreme inequality. But how do you measure the exact sliver of fairness?