This new Gini coefficient was computed regarding Lorenz curve
The brand new Lorenz bend (Wikipedia hook up) was a chart exhibiting the fresh proportion regarding overall money or wide range stored by bottom x% of those. In the event the wide range was similarly marketed the new graph create inform you a good straight-line ranging from (0%, 0%) and you can (100%, 100%). Extent the fresh new contour bends beneath the type of equivalence suggests the newest the total amount of money inequality.
An effective Gini coefficient are computed for every Lorenz bend, but discover thousands out-of Lorenz contours for every single Gini coefficient. For this reason, the latest Lorenz bend can not be determined regarding Gini coefficient alone. That higher exemplory case of so it originates from a newsprint from the Religious Damgaard and you will Jacob Weiner called “Outlining inequality in-plant dimensions Bonuses or fecundity.” I will paraphrase the example when it comes to earnings (the original is centered doing differences in bush proportions):