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Social Sciences
Economics
1912
Intermediate

Gini Coefficient Formula

G=∑i=1n∑j=1n∣xi−xj∣2n2xˉG = \frac{\sum_{i=1}^n \sum_{j=1}^n |x_i - x_j|}{2n^2 \bar{x}}

Measures inequality—0 is perfect equality, 1 is maximum inequality.

By Corrado Gini

Social Sciences
Gini Coefficient Formula
1912 · Corrado Gini
Why it matters: Universal metric for economic inequality and policy evaluation.

Discoverers: Corrado Gini (1912)

What does it mean?

Measures inequality—0 is perfect equality, 1 is maximum inequality.

Why should I care?

Universal metric for economic inequality and policy evaluation.

Variables & Units

SymbolNameUnitMeaning
GGGini coefficient—0 to 1
xix_iIncome—Individual income/wealth
nnPopulation—Number of individuals

Worked Example

G=0.25 moderate inequality; G>0.4 high inequality.

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Sources & further reading

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Equation Universe

Gini Coefficient Formula

G=∑i=1n∑j=1n∣xi−xj∣2n2xˉG = \frac{\sum_{i=1}^n \sum_{j=1}^n |x_i - x_j|}{2n^2 \bar{x}}

Real-world impact

Global economy

Quantitative models shape markets and policy.

Photo: Unsplash — financial markets

Measures inequality—0 is perfect equality, 1 is maximum inequality.

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