In 2018, according to the gini coefficient, household income distribution in the united states was 0. The gini coefficient has the advantage of being invariant with respect to scale, so that larger areas or richer areas do not necessarily have larger or smaller gini coefficients. Between the mid1980s and 2012, inequality measured by the gini coefficient went up by almost five points or 15% in the united states, from 0. The gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. If a 0, it means the lorenz curve is actually the line of equality. The text of the report includes a summary table of the major income distribution measures. Gini ratios of families by race and hispanic origin of householder. In 2018, the american community survey put the gini index at 0. Rongxing guo, in understanding the chinese economies, 20. The gini coefficient is a measure of statistical dispersion most prominently used as a measure of inequality of income distribution or inequality of wealth distribution. It was developed by the italian statistician corrado gini in 1912 definition. The gini coefficient of per capita expenditure2 worsened in 12 economies, including the prc, india, and indonesia.
A statistical manual for the united states of america 1806. Historical information is available for distributions of housing, perhaps for. The gini index or gini coefficient is a statistical measure of distribution developed by the italian statistician corrado gini in 1912. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. Although the census bureau has been measuring incomes for a halfcentury. As the graph below shows, over the past 26 years this indicator reached a maximum value of 39. The gini coefficient is a measure of inequality of incomes or sometimes wealth across. Gini coefficient measures the inequality of wealth distribution or income inequality in a particular area. The gini coefficient also always rises when income is transferred from a. The gini coefficient is a commonlyused measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1. The gini coefficient is calculated by plotting the distribution of wealth in a society against total equality. Gini coefficient simple english wikipedia, the free. Thus, countrylevel gini coefficients cannot be aggregated into regional or global ginis, although a. Gini ratios of families by race and hispanic origin of.
It sketches a brief portrait of increasing income inequality in oecd countries and. At an initial income of usd below which countries are classified according to the world bank as low income countries the predicted effect of a 1 percentage point increase in the gini coefficient on the longrun level of gdp per capita is around 4 percent. This pdf is a selection from an outofprint volume from the national bureau. Reassessing the facts about inequality, poverty, and redistribution. In a country with a gini of 100, one person receives all of the countrys income. A gini coefficient of 100 represents 100 percent concentration in a countrys income distribution. It is defined as a ratio with values between 0 and 1. Income inequality in the united states mercatus center.
The gini coefficient is the most commonly used measure of the amount of income inequality in a society in the chart above, we see that the amount of income inequality among individual americans increased in the years from 1947 to 1960. The gini coefficient is usually a number between 0 and 1 or 0 to 100. Countries ranked by gini index world bank estimate asia. Moreover, a ten percent increase in everyones income will not impact the gini coefficient.
However, american factfinder no longer exists you will need to access the data through the us census site, and it is a navigational nightmare. According to the map showing gini coefficients for all countries, greenland has a gini coefficient that is gini index world bank estimate the value for gini index world bank estimate in romania was 35. Census bureau, current population survey, march 19681999. Gini index world bank estimate united states world bank, development research group. Each year the census bureau updates its income inequality statistics in the income and poverty in the united states p60 report. Where can i find the gini coefficient of all us counties. Share of aggregate income received by each fifth and top 5 percent of families. There appears to be a positive, statistically significant. Incomes are more equally distributed and fewer people are poor where social spending is high. While a perfect scenario would be that of equality in income distribution, this is not normally the case in most of the areas around the world. This is a moderate decrease from 1988s estimated coefficient of 0. Detailed historical tables showing selected measures of household income dispersion are included in the appendix of this report. Bureau of the census, income, poverty, and health insurance coverage in the united states.
In this case, the gini coefficient is 0 and it means there is perfect distribution of. Gini index for the united states sipovginiusa fred. The gini coefficient for gross equivalised household income is from the u. The gini coefficient also known as the gini index or gini ratio is a measure of differences in income. Wealth levels and distribution in the early american. The changing shap of the nations income distribution 1947 cepal. Another limitation of the gini coefficient is that it is not additive across groups, i. The gini index is the gini coefficient from the italian corrado gini expressed as a percentage, and is equal to the gini coefficient multiplied by 100. Methodology and historical estimation of education gini coefficients daniel l. From the early 1990s to the late 2000s, the gini increased from 32 to 43 in the prc, from 33 to 37 in india, and from 29 to 39 in indonesia. Promoters of the gini coefficient argue that the united states has become more unequal over time. Developed in 1912 by corado gini an italian statistician the gini coefficient is most prominently used as a measure of inequality of income or wealth distribution. There are several estimates for the gini coefficient worldwide.
Inequalities in the standard of living in the united states. Reassessing the facts about inequality, poverty, and. An overview of growing income inequalities in oecd countries. Mean income received by each fifth and top 5 percent of families. We unearthed historical waves of the survey of consumer finances scf that. Although the census bureau has been measuring incomes for a half century. For instance, around the time of the great recession, in 2008, scholars branko milanovic and christoph lakner surmise that the global gini coefficient for income was 0. It is a measure of the inequality of a distribution, a value of 0. Gini index world bank estimate world bank, development research group. Gini country report united states page 1 executive summary in brief, we find that inequality is high and rising in the united states, but the great majority of the increase was captured by the top end of the distribution since the mid1990sthe top 1 percent in. Income inequality data tables the united states census. Data and research on social and welfare issues including families and children, gender equality, gini coefficient, wellbeing, poverty reduction, human capital and inequality. This chart its linked to an interactive webpage shows how income and wealth inequality in america dropped significantly in the 1930s and reached their lowest point in the 1960s and 1970s after democratic economic populist presidents fdr and lbj enacted aggressive antipoverty programs and while top marginal income tax rates were well in excess of 50%.