This measure evaluates the degree of income inequality within a population, providing insights into how wealth is distributed among individuals or households. It is derived from the Lorenz curve, which compares cumulative income shares against the cumulative number of recipients, beginning with the least wealthy. By calculating the area that lies between the Lorenz curve and the line of perfect equality, it quantifies this disparity on a scale from 0 to 100, where 0 indicates complete equality and 100 signifies complete inequality. Analyzing this metric over time or across different regions allows policymakers to assess the effectiveness of economic interventions and address disparities, fostering a deeper understanding of societal well-being and economic performance.
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