Understanding the Gini Index: Measuring Income Inequality

The Gini index ranges from 0 (perfect equality) to 100 (perfect inequality). Most developed countries fall between 25 and 40.

How It Works

A Gini of 0 means everyone earns the same. A Gini of 100 means one person earns everything. The United States sits around 41, while South Africa exceeds 60.

Limitations

Two countries can have the same Gini but very different income distributions. It does not capture who is rich or poor, or income mobility.

Global Trends

Within-country inequality has risen in most developed nations since 1980. Check our Gini rankings for the latest data.