The indicator measures the extent to which the distribution of income among individuals or households within a society deviates from a perfectly equal distribution. It ranges from 0 to 100, where 0 represents perfect equality (everyone has the same income) and 100 represents maximum inequality (all income is accrued by a single household). It can be calculated by plotting the cumulative income share on the vertical axis against the distribution of the population on the horizontal axis, thus obtaining a so-called Lorenz curve. The Gini coefficient is then calculated as the area under the curve divided by the area under the Lorenz curve of an equal distribution of income.
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