Model Perspective

Jul 21, 2024 · Fundamentals

Measuring Income Inequality: Gini, Theil, Hoover & Atkinson Indices

This article introduces four common inequality measurement indices—Gini, Theil, Hoover, and Atkinson—explains their formulas and interpretation, demonstrates calculations using a hypothetical village’s income distribution, and presents comparative data from G20 countries to illustrate how these metrics assess income fairness.