Publication

On the negative bias of the Gini coefficient due to grouping

Warrens, M. J., Oct-2018, In : Journal of Classification. 35, 3, p. 580-586 7 p.

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The Gini coefficient is a measure of statistical dispersion that is commonly used as a measure of inequality of income, wealth or opportunity. Empirical research has shown that the coefficient may have a nonnegligible downward bias when data are grouped. It is unknown under which grouping conditions the downward bias occurs. In this note it is shown that the Gini coefficient strictly decreases if the data are partitioned into equal sized groups.
Original languageEnglish
Pages (from-to)580-586
Number of pages7
JournalJournal of Classification
Volume35
Issue number3
Publication statusPublished - Oct-2018

    Keywords

  • INEQUALITY, INDEX

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