Question

Why gini index is seen as a measure of total variance?

Answer 1

Answer:

Explanation:

The Gini coefficient was proposed by Gini as a measure of inequality of income or wealth.[5] For OECD countries, in the late 20th century, considering the effect of taxes and transfer payments, the income Gini coefficient ranged between 0.24 and 0.49, with Slovenia being the lowest and Chile the highest.[6] African countries had the highest pre-tax Gini coefficients in 2008–2009, with South Africa the world's highest, variously estimated to be 0.63 to 0.7,although this figure drops to 0.52 after social assistance is taken into account, and drops again to 0.47 after taxation.The global income Gini coefficient in 2005 has been estimated to be between 0.61 and 0.68 by various sources.

There are some issues in interpreting a Gini coefficient. The same value may result from many different distribution curves. The demographic structure should be taken into account. Countries with an aging population, or with a baby boom, experience an increasing pre-tax Gini coefficient even if real income distribution for working adults remains constant. Scholars have devised over a dozen variants of the Gini coefficient.

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Answer 2

Answer:

The Gini coefficient was proposed by Gini as a measure of inequality of income or wealth.[5] For OECD countries, in the late 20th century, considering the effect of taxes and transfer payments, the income Gini coefficient ranged between 0.24 and 0.49, with Slovenia being the lowest and Chile the highest.[6]

Explanation: