Gini coefficient is a measure of statistical dispersion intended to represent the income inequality within a nation or any other group of people.
The gini coefficient measures how far the actual Lorenz curve for a society’s income or wealth is from the line of equality.
Formula to calculate gini coefficient.
![Calculate Gini Coefficient.](https://www.learntocalculate.com/wp-content/uploads/2021/01/lorenz-curve.png)
![Calculate Gini Coefficient.](https://www.learntocalculate.com/wp-content/uploads/2021/01/Gini-coefficient.png)
A is the area above the Lorenz curve.
B is the area below the Lorenz curve.
Example:
Suppose you calculated the area below and above the Lorenz curve and found it to be 1500 and 3500 square units, calculate the gini coefficient.
![Calculate Gini Coefficient.](https://www.learntocalculate.com/wp-content/uploads/2021/01/Gini-coefficient-2.png)
Therefore, your gini coefficient is 0.3.