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This analytical tool addresses the most popular inequality index, the Gini index. It discusses its characteristics and the link with another popular graphical tool of representing inequality, the Lorenz Curve. Extended version of the Gini Index with different weighting schemes are also discussed. The use of the Gini Index and of its generalised versions is explained through a step-by-step procedure and numerical examples.

For further information, see also:

• Charting Income Inequality. The Lorenz Curve. EASYPol Series 000
• Impacts of Policies on Poverty. Basic Poverty Measures. EASYPol Series 007
• Policy Impacts on Inequality: Inequality and Axioms for its Measurement. EASYPol Series 054
• Policy Impacts on Inequality: Simple Inequality Measures. EASYPol Series 080

This paper is part of the FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development and food security). To find other EASYPol series resources, go to the Policy Support and Governance website>Resources and type "EASYPol" in the free text search.