Lorenz Curve and Gini Coefficient

1
The Lorenz Curve
2
Lorenz Curve
Population Income
0 0
10 2
20 5
30 8
40 12
50 17
60 24
70 33
80 47
90 66
100 100

• The Lorenz Curve shows the equality of income
  distribution.
• The further the curve lies from the line of
  equality the less even income distribution is.

3
Gini Coefficient

• The Gini Coefficient puts a mathematical value on
  the level of inequality
• 0 represents prefect equity
• 1 represents perfect inequality
• You may see numbers multiplied by 100

A
B
4
UK Data
5
UK Gini Coefficient