Gini Coefficient

Economics

A statistical measure of income or wealth inequality within a population, ranging from 0 (perfect equality) to 1 (maximum inequality).

## Gini Coefficient

The Gini coefficient (Gini index) measures the degree of inequality in income or wealth distribution. A Gini of 0 means everyone earns equally; a Gini of 1 means one person earns everything.

### Values by Country (Post-Tax, 2023)

| Country | Gini | Inequality Level |
|---------|------|------------------|
| South Africa | 0.63 | Very high |
| Brazil | 0.53 | High |
| US | 0.39 | Above OECD average |
| UK | 0.35 | Moderate |
| Germany | 0.30 | Moderate |
| Japan | 0.33 | Moderate |
| Denmark | 0.28 | Low |
| Slovenia | 0.24 | Very low |

### Why It Matters for Salaries

A high Gini coefficient means greater salary dispersion — the gap between top and bottom earners is wider. This affects salary expectations: in high-Gini countries, the premium for skills and experience tends to be larger.