Gini Coefficient (LIS)
| Quick info | |
|---|---|
| Data type | Numeric |
| Scale | Metric |
| Value labels | Not applicable |
| Technical name | socstr_gini_coef_lis |
| Category | Social structure |
| Label | Gini Coefficient (LIS) |
| Related indicators |
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The "Gini Coefficient" measures how far a given aggregate's distribution among individuals or households deviates from perfect equality in an economy. It uses a scale of 0 to 1 to quantify inequality, where 0 represents perfect equality and 1 represents perfect disparity.
Coding rules
The Gini coefficient, a summary measure of the population's disposable household income distribution, is computed using the Lorenz curve. The Lorenz curve for income is created by plotting the cumulative share of disposable household income and the cumulative share of the number of households as proportions of the total disposable household income and the total number of households, respectively, when households (or individuals) are ranked from poorest to richest. If every household group had the same income, the Lorenz curve would be a 45-degree line. While a value of 1 signifies that one household or individual owns all of the disposable household income, a value of 0 denotes absolute equality. The range of Gini coefficients is 0 to 1. The Gini Coefficient covers all surveyed households and their members. It is calculated using the LIS disposable household income data. Disposable Household Income (DHI) is defined as the sum of monetary and non-monetary labor income, monetary capital income, monetary social security transfers (including work-related insurance transfers, universal transfers, and assistance transfers), and non-monetary social assistance transfers, as well as monetary and non-monetary private transfers, minus the amount of income taxes and social transfers. All households where disposable income is missing are excluded. Teorell et al. (2024:1095) define the variable as "Gini Index measures the extent to which the distribution of the specified aggregate among individuals or households within an economy deviates from a perfectly equal distribution. The Gini index measures the area between the Lorenz curve and the hypothetical line of absolute equality. A Gini index of zero represents perfect equality and 1, perfect inequality."
Bibliographic info
Citation:- Teorell, Jan, Aksel Sundström, Sören Holmberg, Bo Rothstein, Natalia Alvarado Pachon, Cem Mert Dalli, Rafael Lopez Valverde & Paula Nilsson (2024). The Quality of Government Standard Dataset, version Jan24. University of Gothenburg: The Quality of Government Institute, https://www.gu.se/en/quality-government, doi:10.18157/qogstdjan24/li>
- LIS Cross-National Data Center in Luxembourg. (2022). LIS inequality and poverty key figures. https://www.lisdatacenter.org/download-key-figures/
- Neugschwender (2020). Top and Bottom Coding at LIS. LIS - Technical Working Paper Series 9, at: https://www.lisdatacenter.org/wps/techwps/9.pdf
- Kohli, Martin, Künemund, Harald, Schäfer, Andrea, Schupp, Jürgen and Vogel, Claudia (2006). Erbschaften und ihr Einfluss auf die Vermögensverteilung, in: Vierteljahrshefte zur Wirtschaftsforschung, 75 (1) p.58-76. https://doi.org/10.3790/vjh.75.1.58
Misc
Project manager(s): Responsible for data editing, description (WESIS) and entry: Andrea Schäfer (2021-2025, Version 0.002), Jean-Yves Gerlitz (2018-2020; Version 0.001); Principal Investigator: Irene Dingeldey, Ulrich Mückenberger; Student assistants: Karolin Meyer (2018-2020)
Data release:- Version 0.001: Initial release with data The Quality of Government Standard Dataset, version Jan19
- Version 0.002: Updated with data from The Quality of Government Standard Dataset, version January 2024
Revisions: No revisions yet
Sources
- Teorell, Jan, Stefan Dahlberg, Sören Holmberg, Bo Rothstein, Natalia Alvarado Pachon and Richard Svensson. 2019. The Quality of Government Standard Dataset, version Jan19. University of Gothenburg: The Quality of Government Institute. http://www.qog.pol.gu.se doi:10.18157/qogstdjan19
- Teorell, Jan and Sundström, Aksel and Holmberg, Sören and Rothstein, Bo and Alvarado Pachon, Natalia and Dalli, Cem Mert and Lopez Valvarde, Rafael and Nilsson, Paula (2024). The Quality of Government Standard Dataset, version Jan24. University of Gothenburg: The Quality of Government Institute, Available at: https://www.gu.se/en/quality-government/qog-data/data-downloads/standard-dataset
- LIS Cross-National Data Center in Luxembourg. (2022). LIS inequality and poverty key figures. https://www.lisdatacenter.org/download-key-figures
