Named after Italian statistician Corrado Gini, the **Gini coefficient** is a way to measure the income distribution of a population.

The value for the Gini coefficient ranges from 0 to 1 where higher values represent greater income inequality and where:

**0**represents perfect income equality (everyone has the same income)**1**represents perfect income inequality (one individual has all the income)

You can find a list of Gini coefficients by country here.

The following examples show two ways to calculate a Gini coefficient in R by using the **Gini()** function from the **DescTools** package.

**Example 1: Calculate Gini Coefficient Using Individual Incomes**

Suppose we have the following list of annual incomes for 10 individuals:

Income: $50k, $50k, $70k, $70k, $70k, $90k, $150k, $150k, $150k, $150k

The following code shows how to use the **Gini()** function to calculate the Gini coefficient for this population:

library(DescTools) #define vector of incomes x <- c(50, 50, 70, 70, 70, 90, 150, 150, 150, 150) #calculate Gini coefficient Gini(x, unbiased=FALSE) [1] 0.226

The Gini coefficient turns out to be **0.226**.

**Note**: In a real-world scenario there would be hundreds of thousands of different incomes for individuals in a certain country, but in this example we used 10 individuals as a simple illustration.

**Example 2: Calculate Gini Coefficient Using Frequencies**

Suppose we have the following frequency table that shows the number of individuals in a certain population with specific incomes:

The following code shows how to use the **Gini()** function to calculate the Gini coefficient for this population:

library(DescTools) #define vector of incomes x <- c(10, 20, 25, 55, 70, 90, 110, 115, 130) #define vector of frequencies n <- c(6, 7, 7, 14, 22, 20, 8, 4, 1) #calculate Gini coefficient Gini(x, n, unbiased=FALSE) [1] 0.2632289

The Gini coefficient turns out to be **0.26232**.

**Note**: You can find the complete documentation for the **Gini()** function from the **DescTools** package here.

**Additional Resources**

The following tutorials explain how to calculate a Gini coefficient and how to create a Lorenz curve in Excel:

How to Calculate Gini Coefficient in Excel

How to Create a Lorenz Curve in Excel