Gini Coefficient

The Gini coefficient measures how income or wealth is distributed across a population. It's the most widely used inequality metric globally, calculated by the World Bank, OECD, and governments worldwide.

How to Read It:

• 0-25 (Low inequality): Nordic countries like Denmark (28.2), Slovenia (24.4)
• 25-35 (Moderate-low): Most of Europe, Canada (33.3), Australia (34.4)
• 35-45 (Moderate-high): United States (41.5), China (38.2), Mexico (45.4)
• 45+ (High inequality): Brazil (52.9), South Africa (63.0), Namibia (59.1)

What It Means: A Gini of 40 means if you randomly picked two people, their income difference would be 40% of the average income.

United States Example (Gini 41.5):

• Top 10% earn 50% of all income
• Bottom 50% earn 13% of all income
• The gap between rich and poor is wider than most developed nations

Real-World Impact: Countries with lower Gini coefficients generally have:

• Better social mobility (easier to move up economically)
• Longer life expectancy
• Higher happiness scores
• More stable economies

Why It Matters for You: When comparing your income internationally, the Gini coefficient shows whether you're in a country where middle class exists (low Gini) or wealth is concentrated at the top (high Gini).

The Catch: A country can have high average income but high inequality (like the US), making it harder for typical earners to get ahead. Conversely, some countries have lower average income but better equality, meaning the middle class lives more securely.

The Bottom Line: The Gini coefficient reveals whether economic gains are shared broadly or concentrated among the wealthy—critical context when evaluating your income percentile.