Income inequality in the philippines, as measured by the gini coefficient, declined from 46. Roger aliagadiaz and silvia montoya additional contact information silvia montoya. The lorentz curve is a graphical representation of this inequality which is intimately related to the gini coefficient. I need to calculate the gini coefficient from disposable personal income data at lis. Jul 28, 2016 darkwah ka, nortey enn, mettle fo, baidoo i 2016a a study of the estimation of the gini coefficient of income using lorenz curve. A score of 1 would represent complete inequality, i. Jun 30, 2010 the gini coefficient is a measure of the inequality of a distribution often used for income or wealth distributions.
Darkwah ka, nortey enn, lotsi ca 2016b a proposed numerical integration method using polynomial interpolation. This module should be installed from within stata by typing ssc install descogini. The command is available online for installation in netaware stata. I would like to compute the correlation between the increasing of the gini coefficient and the percentage a certain topic is discussed in the public. Standard deviations and gini coefficients are often chosen as measures of inequality. Stata program atkinson, inequal, lorenz, relsgini these four adofiles provide a variety of measures of inequality. Is the observed difference in the the gini coefficient a real reduction in inequality in income distribution or is it only due to sampling variations. The lowest 10% of earners make 2% of all wages the next 40% of earners make 18% of all wages the next 40% of earners make 30% of all wages the highest 10% of earners make 50% of all wages. Calculating gini coefficient of worldincome inequality with stata replicating and extending arrighidrangel findings with stata software related issues.
The gini coefficient is widely used to measure inequality in the distribution of income, wealth, expenditures, etc. A lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the. This command decomposes the gini coefficient by income source using the approach described in lerman and yitzhaki 1985 and in stark, taylor and yitzhaki 1986. Only four previous studies were found to have used gini coefficients in measuring education inequality. A friend asked me a question related to this weeks ago. Decomposition of the gini coefficient using stata alejandro lopezfeldman. A value of 0 represents absolute equality, a value of 100 absolute inequality. I havent used the gini coefficient in the last 25 years, so i cant give more complete advice. By decomposing this measure you can better understand the determinants of inequality.
Estimating the empirical lorenz curve and gini coefficient. Use excel to produce the lorenz curve and calculate gini coefficient. Calculating gini coefficient of world income inequality with. This adofile provides the gini coefficient for the whole population, for each subgroup specified in groupvar, and its pyatts 1976 decomposition in between, overlap and withingroup inequality. The small sample variance properties of the gini coefficient are not known, and large sample approximations to the variance of the coefficient are poor mills and zandvakili, 1997. If you type, in stata, findit lorenz then you will find a choice of programs to plot a lorenz curve. Gini coefficient and the lorentz curve file exchange.
They estimated the gini coefficient based on either enrollment or education finance. I know that most of the time people use time series crosssectional models to compute a correlation between a gini coefficient and a discussion topic. I am wondering whether the stata has an official command for this. I mean, without decomposing into within and between groups, i want to estimate only the gini with the by option. We will also compare income inequality using one of the most popular and longstanding inequality measures, the gini coefficient. The gini index or gini coefficient is a statistical measure of distribution developed by the italian statistician corrado gini in 1912. The range of the gini coefficient goes from 0 no concentration to v\fracn1n maximal concentration. Our interest lies in studying the concentration or distribution of a feature of each of the n observations across the n members. Measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution. Thanks for help momo, you may be interested in adept.
Applied econometrics at the university of illinois. Stata module to compute gini index with within and betweengroup inequality decomposition. Now you can define a scaleinvariant version of the standard deviation, by dividing by the mean coefficient of variation. To quantify this, john calculated the gini coefficient for the r project, where the inequality metric was based on the number of commits per core team member extracted from the r svn logs. The software is available free of charge from the world banks site. Sampling distribution of gini coefficient rbloggers. I am trying to compute gini coefficient for groups in a single table to demonstrate inequality among several groups based on consumption or other variables.
Groupvar is a categorical variable not string who determines the subgroups in which the population will be divided. Thus a gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. There are many userwritten programs calculating gini coefficients. Generalized gini and concentration coefficients with factor. She asked if i know a stata command that tests the significance between the difference of two gini coefficients. Stack overflow for teams is a private, secure spot for you and your coworkers to find and share information. Stata provides ado files that will calculate the gini coefficient as well as several other. Gini index world bank estimate world bank, development research group. Dear statalisters i use stata to calculate the gini coefficient and i found this command somersd, but actually i dont know how to do the. Generalized gini and concentration coe cients with factor decomposition in stata philippe van kerm cepsinstead, luxembourgz september 2009 revised february 2010 abstract sgini is a userwritten stata package to compute generalized gini and concentration coe cients. However, american factfinder no longer exists you will need to access the data through the us census site, and it is a navigational nightmare. Estimation of the gini coefficient for the lognormal.
Data analysis with stata 12 tutorial university of texas. In my case, i want to calculate the gini coefficient of disease rates across geographic areas, so this calculation would need to take into account both the number of cases of disease. Stata module to compute gini index with within and. Estimating lorenz and concentration curves in stata ben jann institute of sociology university of bern ben. I am trying to compute gini coefficient for groups in a single table to demonstrate inequality among several groups based. Hence, the gini coefficient computes the difference between all available income pairs in the data and calculates the total of all absolute differences. The gini coefficient is a measure of inequality of incomes or sometimes wealth across individuals a score of 0 on the gini coefficient represents complete equality, i. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality. The lorenz curve is a graphical statistic that was first introduced in 1905 as a tool for exhibiting the concentration of wealth in a population. The gini coefficient is a measure of the inequality of a distribution often used for income or wealth distributions.
The gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. While a perfect scenario would be that of equality in income distribution, this is not normally the case in most of the areas around the world. Or is there any other easy way to compute only the gini coefficients in stata with such by options. How can i change the number of decimals in statas output. This note describes syntax, formulas and usage examples. Learn more calculating the gini coefficient from lis data in stata. Gini coefficient measures the inequality of wealth distribution or income inequality in a particular area. The results were surprising a gini coefficient of over 0. It was developed by the italian statistician and sociologist corrado gini and published in his 1912. Darkwah ka, nortey enn, mettle fo, baidoo i 2016a a study of the estimation of the gini coefficient of income using lorenz curve. A score of 0 on the gini coefficient represents complete equality, i. Dear all, i am writing a stata package, which involves using calculating the gini index. I am writing a stata package, which involves using calculating the gini index. Data analysis with stata 12 tutorial university of texas at.
Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. Calculating the gini coefficient from lis data in stata. We will suggest some basic methods to calculate the hill estimator, the lorenz curve, and the gini coefficient. According to a lis training document, the stata code to do this is. This module should be installed from within stata by typing ssc install fastgini.
If a 0, it means the lorenz curve is actually the line of equality. The gini coefficient is calculated as twice the area between the roc curve and the diagonal, or as gini 2auc 1. They present two methods direct and indirect for calculating an education gini index, and generate a quinquennial data set on education gini indexes for the over15population in. Aaron, quick question about your gini coefficient calculation in tableau. Mar 15, 2019 this feature is not available right now. How can we calculate the gini index of an income distribution. Momo, if you are interested in decomposition by sources you could also use descogini alejandro 2010 11 19 sergiy radyakin. However, from your description, you can can get such a sum without a macro by. Sep 02, 2012 stata program atkinson, inequal, lorenz, relsgini these four adofiles provide a variety of measures of inequality. I am currently using a userwritten command called fastgini.
Statistical software components from boston college department of economics. Suppose that n observations patient visits are dispersed among n experimental units physicians. Standard divisions of school attainment were used in a few studies. I had seen the command inequal but this doesnt have a by option. The gini coefficient is negative in the unlikely event that the roc curve is below the diagonal.
For example statistics new zealand via the oecd report a gini coefficient of 0. Spss macro for computing gini coefficient of inequality. The gini coefficient is invariant to scale and is bounded, the standard deviation invariant to a shift, and unbounded, so they are difficult to compare directly. In this case, the gini coefficient is 0 and it means there is perfect distribution of income everyone earns the same amount. Where can i find the gini coefficient of all us counties. Gini index measures the extent to which the distribution of income or, in some cases, consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. Stata module to perform gini decomposition by income source, statistical software components s456001, boston college department of economics, revised 22 sep 2008. Stata module to compute gini index with within and betweengroup inequality decomposition, statistical software components s372901, boston college department of economics. The gini coefficient is a measure of inequality of incomes or sometimes wealth across individuals. Dear statalisters i use stata to calculate the gini coefficient and i found this command somersd, but actually i dont know how to do the inequality graph by stata. A program you havent mentioned is somersd, which can also be used to calculate gini coefficients, and can be downloaded from ssc.
Calculate the gini index on total disposable income for finland and the us in 2000, after bottom. We represent the number of observations for each experimental unit as m k, k 1, n. To numerically present this, you can ask stata for the skew and kurtosis statistics, including pvalues, as we did in section 3. The name gini coefficient is a moniker for a large family of variations on the basic inequality measure, but the standard interpretation is that of the ratio of the area under the lorenz curve a function of the cumulative distribution to that of the line of perfect equality. Estimating lorenz and concentration curves in stata. In this paper i present a new stata command called lorenz that estimates lorenz and. Income inequality among individuals is measured here by five indicators. The bias corrected gini coefficient goes from 0 to 1.
To do this in a stata session, type ssc desc somersd for a brief description, and ssc install somersd, replace to install the package, and net get somersd to copy the 3. It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper. The gini index measures the area between the lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Calculating gini coefficient of world income inequality. In your example, you are calculating the gini coefficient of sales a single variable. The gini coefficient is always between 0 and 1, with a higher number representing a better classifier. The gini coefficient as a measure of software project risk. Does anyone have idea how to compute gini coefficient for groups. Statistical software components s456814, department of economics. For more information and methodology, please see povcalnet. Notes on how to compute gini coefficient suppose you are given data like this. Abstract the authors use a gini index to measure inequality in educational attainment.
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