3.3.2—Gini coefficient

The Gini coefficient measures inequality in a distribution. A value of 0 represents complete equality; a value closer to 1 represents greater concentration in the hands of fewer people.

It can be derived from the Lorenz curve, but the same coefficient can hide different distribution shapes and does not identify absolute income levels.

Country A can have a lower Gini than Country B but still have lower average incomes; the coefficient compares distribution, not prosperity.

A falling Gini means inequality fell according to that measure, not that every household became richer or that poverty disappeared.