The Lorenz curve and Gini coefficient
By EnhanceTuition on youtube.com
More about this content:
In this video we'll learn about the Lorenz curve and how it is used to measure inequality. From there we will calculate the Gini coefficient and understand what its value tells us. The Lorenz curve is used to measure the distribution of income across a population, where a perfect equality would be represented by a line. The Gini coefficient is calculated by dividing the area of A (above the Lorenz curve) by the total area under the line of perfect equality, with a value of 0 indicating perfect equality and a value of 1 indicating higher inequality. The United States is ranked 39th in terms of inequality, while the most unequal countries are Lesotho, South Africa and Micronesia.
Explore below learning paths to discover the previous and next steps for understanding this concept.
Innovation and Entrepreneurship Masterclass
Adobe Illustrator Essential
Macroeconomics For Better Understanding The world