Gini Coefficient Demonstration - Income Concentration

Distribution Range

Income (Y)

Income Share
(Y)

Population
Share (X)

Cumulative
Income
Share (Y)

Cumulative
Population
Share (X)

###

First

R$ 180

0%

10%

0%

10%

###

Second

R$ 350

1%

10%

1%

20%

###

Third

R$ 450

1%

10%

1%

30%

###

Fourth

R$ 1,200

2%

10%

3%

40%

###

Fifth

R$ 2,300

3%

10%

7%

50%

###

Sixth

R$ 4,000

6%

10%

13%

60%

###

Seventh

R$ 6,500

10%

10%

23%

70%

###

Eighth

###

16%

10%

38%

80%

###

Ninth

###

23%

10%

61%

90%

###

Tenth

###

39%

10%

100%

100%

66,303

100%

100%

Gini Coefficient

0.606

120%

Lorenz Curve - 0,606

100%
80%
60%
40%

Sixth

Fifth

Fourth

0%
Third

Compiled by Rafael Alves Gutierrez Montenegro, Economics Student

PUC-SP, Pontifcia Universidade Catlica de So Paulo, Brazil
Department of Economics
rafaelgmt@gmail.com

20%
Second

High
concentration
Lorenz
Curve - 0.606

First

Concentration Examples:

ome Concentration
|X-Y|

Xk+1 Xk (A)

Yk+1 + Yk (B)

A*B

10%

10%

0%

0%

9%

30%

1%

9%

50%

8%

180

1200

1200

0%

350

1200

1200

1%

0%

450

1200

1200

70%

2%

1%

1200

1200

1200

7%

90%

3%

3%

2300

2300

2300

4%

110%

6%

7%

4000

3500

2900

0%

130%

10%

13%

6500

5000

3500

6%

150%

16%

23%

10323

6000

4000

13%

170%

23%

38%

15000

7000

4500

29%

190%

39%

75%

26000

7500

4500

95%

161%

Tenth

Ninth

Eighth

Seventh

Sixth

Fifth

Fourth

Lorenz Curve - 0,606

Third

High concentration
Average concentration
Small concentration

Perfect Equality

1200

Perfect Equality

1200

Small concentration

1200

3 Average concentration

1200

High concentration

1200 High concentration

1200
1200
1200
1200
1200