It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper variability and mutability italian. Countries ranked by gini index world bank estimate africa. Measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution. Gini coefficient measures for south africa by sex 2006, 2009, 2011 and 2015 40. What is the ideal gini coefficient if the end goal is a. The gini index is the most widely used measure of inequality see map above. Income inequality trends in subsaharan africa undp. That public criticism inspired him to write a book a history of inequality in south africa specifically devoted to the subject of inequality within. Among the brics countries of brazil, russia, india, china and south africa, south africa has the highest income inequality index, a gini index of 0. Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. Of course, measuring inequality is multidimensional, which particularly applies to south africa. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The eradication of all forms of inequality was probably the most important aspiration for people predemocracy.
Gini index measures the extent to which the distribution of income or, in some cases, consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. This finding is consistent with a 2012 study by the african development bank that namibia, south africa, angola, botswana, zambia, lesotho and swaziland count among the continents top. Poverty trends in south africa statistics south africa. According to the world bank, south africas gini coefficient of 0. According to the gini coefficient index a standard measure of income equality, the 10 most unequal countries in the world are. Gini coefficient of per capita income from statistics south africa, 2014, table 5, linked at 20052006 to series from 1993 from leibbrandt et al 2010a, table 5. Proportion of people living below 50% of median income per capita. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. According to their individual focused method, in the 108 countries they studied, south africa had the worlds highest gini coefficient at 0. The gini indices for ten countries in southern africa shows a consistent pattern of economic growth coexisting side by side with growing levels of inequality. Pdf measuring educational inequality in south africa and. In 2018, according to the gini coefficient, household income distribution in the united states was 0. The gini coefficient for gross equivalised household income is from the u.
South africa history, capital, flag, map, population. About 40% of south africans lived below the lower bound poverty line in 2015, up from 36. As the graph below shows, over the past 21 years this indicator reached a maximum value of 64. In this case, the gini coefficient is 0 and it means there is perfect distribution of. Of the two gini coefficients, wealth is much more important than income. The gini coefficient is usually a number between 0 and 1 or 0 to 100. Since 1996, at the end of over twelve years of international sanctions, south africas gross domestic product almost. It looks at the distribution of a nations income or wealth, where 0 represents complete equality and 100 total. For them, selfless anc activists like mandela exist only in school textbooks. Gini coefficient is widely used in fields as diverse as sociology, economics, health science, ecology, engineering and agriculture. The gini coefficient is a ratio between 0 and 1, where 0 implies that each.
Sep 24, 2019 in 2018, according to the gini coefficient, household income distribution in the united states was 0. It is defined as a ratio with values between 0 and 1. Gini coefficient definition, calculation and indias rankings. South africa has the worst gini coefficient in the world, according to bill rawson, chairman of the rawson property group. Income inequality and limitations of the gini index. South africa is an uppermiddleincome economy one of only eight such countries in africa. Africa stats sa in partnership with the southern africa labour and development research unit.
It was developed by the italian statistician corrado gini in 1912 definition. A value of 0 represents absolute equality, a value of 100 absolute inequality. Sep 30, 2015 depending on the variable used to measure inequality, the time period, and the dataset, south africas gini coefficient ranges from about 0. Apr 26, 2017 the gini index is the most widely used measure of inequality see map above. In the united states between 1979 and 2007, the gini coefficient for pretax income, according to a study by the congressional budget office pdf, rose from 48 to 59. Shares of top 1 per cent in total gross income from wid. Dimensions of inequality in health, gender and livelihoods 20 credits. Bureau of the census, income, poverty, and health insurance coverage in the united states. This report explores some of the linkages between growth, poverty, inequality and the labour market in postapartheid south africa. South africa is known as one of the most unequal countries in the world, reporting a percapita expenditure gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015.
The economy of south africa is the second largest in africa, after nigeria. Gini coefficient definition, calculation and indias. A lorenz curve plots the cumulative percentages of total income received against the cumulative number of. These include overcrowding, lack of text books and learning. After tracing the historical origin of inequality and describing the recent rise of the black middle. Incomes are more equally distributed and fewer people are poor where social spending is high. The gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality where everyone has the same income and 1 corresponds with perfect inequality where one person has all the incomeand everyone else has no income.
From a historical perspective, africas growth performance has much. For example, in social sciences and economics, in addition to income gini coefficients, scholars have published education gini coefficients and opportunity gini coefficients. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1. Y is the cumulative distribution of the income variable, for i 0,z with y 00 and y 11. This is represented by the gini coefficient2 value of 0. Applying the gini coefficient to measure inequality of water use in the olifants river water management area, south africa james cullis and barbara van koppen introduction benefits of water use. Gini index world bank estimate south africa world bank, development research group. It is, however, recommended that more indepth studies are conducted to develop this concept further and to address some of the issues raised in this.
Is south africa the most unequal society in the world. In economics, the gini coefficient, also known as the gini index or gini ratio, is a measure of statistical dispersion intended to represent the income or wealth distribution of a nations residents, and is the most commonly used measurement of inequality. Pdf in 2000, thomas, wang, and fan published a paper calling for the application of the gini coefficient to educational attainment. This is according to the inequality trends in south africa report released by stats sa. Xis the cumulative distribution of the population variable, for i 0,z with x 00 and x 11. Extreme wealth inequality breeds more inequality and leads to a government that is controlled by a few, a plutocracy or oligarchy. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality. Apr 25, 2018 graph and download economic data for gini index for south africa sipovginizaf from 1993 to 2014 about south africa, gini, and indexes.
Box 2 measuring poverty and inequality in south africa. Measure of income inequality in canada 20002018 statista. Inequality in south africa oxfam digital repository. Stiglitzs 2012 book was called the price of inequality and sought to show the very high.
Distribution of grade 4 numeracy achievement by historical education department data. Empires of inequality stellenbosch university, department of. South africa is an uppermiddleincome economy by the world bank one of only four such countries in africa alongside botswana, gabon and mauritius. This is a list of countries or dependencies by income inequality metrics, including gini coefficients. Mar 17, 2018 of the two gini coefficients, wealth is much more important than income.
Mathematically, the gini coefficient is defined as a ratio of the areas on the lorenz curve diagram see figure 8. Serviceindustry jobs at the low end pay less now than in 1979, and highskilled jobs on the high end pay much moreceo compensation, in particular, has climbed into the. South africas inequality is getting worse as it struggle. A second look at measuring inequality in south africa i a second look at measuring inequality in south africa. South africas remotenessit lies thousands of miles distant from major african cities such as lagos and cairo and more than 6,000 miles 10,000 km away from most of europe, north america, and eastern asia, where its major trading partners are locatedhelped reinforce the official system of apartheid for a large part of the 20th century. Everybody knows that south africans with higher incomes choose to be less dependent on public health and education than others. South africa gini index world bank estimate the value for gini index world bank estimate in south africa was 63. Unequal scenes portrays scenes of inequality in south africa from the air. A second look at measuring inequality in south africa. Gini coefficient measures for south africa by sex 2006, 2009, 2011 and 2015 40 figure 2. South africas gini coefficient is the highest in the world. The world bank and inequality in south africa roape.
The power of the gini index the formula pacific standard. After correcting for this, the world bank can report a much lower gini coefficient for sa than other studies. Gini index world bank estimate country ranking africa. Graph and download economic data for gini index for south africa sipovginizaf from 1993 to 2014 about south africa, gini, and indexes. The gini coefficient also known as the gini index or gini ratio d. Data and research on social and welfare issues including families and children, gender equality, gini coefficient, wellbeing, poverty reduction, human capital and inequality. The reddishbrown kalahari desert with its northwestsoutheasttrending sand dunes and dry lakebeds stands out in this image of south africa.
Depending on the variable used to measure inequality, the time period, and the dataset, south africas gini coefficient ranges from about 0. Table 3 shows that the gini coefficient for south africa declined. An examination of absolute poverty between 2006 and 2015 statistics south africa published by statistics south africa, private bag x44, pretoria 0001. It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper. Given the poor quality of historical economic data, it is difficult to assess the. The gini coefficient is described in a recent the economist article as an aggregation of the gaps between peoples incomes into a single measure. A second look at measuring inequality in south africa 3 z z z i g. World and regional statistics, national data, maps, rankings world data atlas. A modified gini coefficient adel bosch, jannie rossouw, tian claassens and bertie du plessis school of development studies working paper no 58 september 2010 isbn 9781868406951.
Southern africa most unequal region in africa united. This work is published on the african unions website and oecd ilibrary, which gathers all oecd books, periodicals. Much of the countrys inequality stems from apartheids effect on. The gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. Section 3 briefly examines the historical roots of inequality in colonial conquest and. Developed in 1912 by corado gini an italian statistician the gini coefficient is most prominently used as a measure of inequality of income or wealth distribution. Jun 14, 2017 in the united states between 1979 and 2007, the gini coefficient for pretax income, according to a study by the congressional budget office pdf, rose from 48 to 59. Gini coefficient income distribution inequality 20002017 opinion on organizations best suited to tackle income inequality the netherlands 2019 public opinion on ceos pay in the u. The gini index is the gini coefficient expressed as a percentage, and is. Two fifths of sons born to very poor fathers will never get out of the the bottom 40% of the next generations income distribution, according to world banks south africa economy update pdf. Income inequality among individuals is measured here by five indicators.
The gini coefficient also known as the gini index or gini ratio is a measure of differences in income. According to the gini coefficient, as well as other inequality measurements, south africa ranks as one of the most unequal countries in the world. The gini coefficient is a measure of income inequality in a country. Another limitation of the gini coefficient is that it is not additive across groups, i.
Also distinguishable are the westwardflowing orange river, south of the true desert. Any discussion on low cost, subsidized housing in south africa has to take into account one startling fact. South africa s gini coefficient is the highest in the world news any discussion on low cost, subsidized housing in south africa has to take into account one startling fact. Gini coefficient simple english wikipedia, the free. Pdf measuring educational inequality in south africa and peru. If a 0, it means the lorenz curve is actually the line of equality. In discussions of south africa, severe economic disparities are often highlighted. Rongxing guo, in understanding the chinese economies, 20. As a regional manufacturing hub, it is the most industrialized and diversified economy on the continent. The world bank noted that south africa spent more than other countries on its social programmes, with this expenditure successfully lifting around 3,6 million individuals out of poverty.
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