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APPENDIX III

THE GINI COEFFICIENT

The Gini Coefficient is a summary measure that captures the deviation shown in the Lorenz curve. It is calculated as follows:
where xi and yi are the relative frequencies, rather than the cumulative frequencies, and k is the number of classes/groups.

The Gini Coefficient can be expressed graphically with the Lorenz curve, where: G = A/(A+B), where A is the area between the line of equality and the Lorenz curve, and B is the area under the Lorenz curve.

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This text is part of the larger publication:
The Effect of Right-to-Work Laws on Economic Development
Publication: Study
ISBN: 1-890624-28-4 SKU: S2002-02