What does the GINI coefficient measure?

The GINI coefficient is a statistical measure that quantifies income inequality within a population, making it a powerful tool for assessing the level of wealth concentration. It ranges from 0 to 1, where 0 represents perfect equality (everyone has the same income) and 1 signifies perfect inequality (one person has all the income while everyone else has none).

By measuring how income is distributed among individuals or households, the GINI coefficient provides insights into the economic disparities that exist within a society. High GINI values indicate greater inequality, suggesting that a significant portion of wealth is held by a small fraction of the population, while lower values indicate a more equitable distribution of income. This understanding is crucial in sociological and economic analyses, as it can influence social policy, economic strategy, and public welfare initiatives.

The other options do not accurately reflect the concept of the GINI coefficient. The percentage of tax contributions by the wealthy, total income of a country, and employment rate are all important economic indicators, but they do not measure wealth concentration or income distribution specifically.