Gini Coefficient - Gini Coefficients of Representative Income Distributions

Gini Coefficients of Representative Income Distributions

Given the normalization of both the cumulative population and the cumulative share of income used to calculate the GINI coefficient, the measure is not overly sensitive to the specifics of the income distribution, but rather only on how incomes vary relative to the other members of a population. The exception to this is in the redistribution of wealth resulting in a minimum income for all people. When the population is sorted, if their income distribution were to approximate a well known function, than some representative values could be calculated. Some representative values of the Gini coefficient for income distributions approximated by some simple functions are tabulated below.

While the income distribution of any particular country need not follow such simple functions, these functions give a qualitative understanding of the income distribution in a nation given the Gini coefficient. The effects of minimum income policy due to redistribution can be seen in the linear relationships above.