Gini Coefficient and Lorenz Curve

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How the Gini Coefficient and Lorenz Curves are used to measure income inequality.

[@SeanNolan5]

instantly subscribed. two words i rarely put together. it gets tedious dealing with youtube personalities who waste a lot of your viewing time introducing themselves, asking you to like the video, or just talking about things that are unrelated. you are a breath of fresh air and your visuals are simple and satisfying

[@suhailym4116]

Thanks Sal, as always for making things very easy to understand. The gini index map shows India has less inequality compared to other countries, which is interesting to see.

[@Gatsbys_gyan]

Lesser Income equality I guess just seems a representation of something counterintuitive. Reports claim the top1% hold around 57% of India's wealth. What does this map try to convey of India though?

[@z_drago444]

yeah..it is interesting to see that you are so much interested in India...why don't u come in here ????

[@nguyenminhnguyet3477]

Thank you for the lecture on Gini coefficient. Please help me understand the differences between Gini coefficient and Concentration index. What index should I use to analyze health inequality? I look forward to your advice. Thank you in advance.

[@tasha9778]

Thank you. I have to right a report comparing Denmark and the US and I didn't understand the Lorenz Curve until now

[@camerashysd7165]

i love this channel coz this guy just enjoys what he deos. hey man are you john ward???

[@skipperry63]

Sir, you have helped me in so many ways I cannot think you enough! What a brilliant explanation!

[@andrewthenerd6830]

Sal Khan, I would like to ask about how could I help your company other than donating (‘cause I’m still a teenager), maybe I could help u to upload subtitles? -me

[@lohithArcot]

you can add subtitles yourself. just click subtitles in the video and click add.

[@DueySR]

@@lohithArcot Unfortunately not any longer... KZbin removed community subtitles :(

[@lohithArcot]

Oh. AI got better than people

[@DueySR]

@@lohithArcot No the caption AI is still kinda crappy, they just took away community contributions because people were abusing it, even though the small amount of abuse was overshadowed by the great benefit it provided.

[@nargizaslanova6849]

Maybe you can join volunteering program of Khan Academy in your country. You can translate subtitles via web site called amara

[@keinestudiere-chillzone633]

This 8 mins went like just a couple of seconds. Thanks for the amazing explanation.

[@anweshadutta8782]

This has been very helpful. Thank you.😊😊😊

[@DistantTower]

Thank you for Khan academy!

[@Caniballe]

Perfect explanation! Thanks!

[@arizavala5297]

Thanks for this video! Great explanation.

[@ivandrofly]

Thank you, thank you, thank you!

[@peterpetrov6522]

Even I learned something today! Nice video.

[@cynthiaamidi2459]

Masterpiece, thanks

[@theultimatereductionist7592]

Here is one way of discretizing the Lorenz curve and one way of defining a Gini coefficient for discrete number, N, of players. Order all players 1

[@andrewweiss2086]

Very helpful, thank you!

[@PalataoArmy]

Came here after participating AMEX competition in kaggle. Thank you for the explanation.

[@supnava8320]

thank you! this helped a lot :)

[@vak1103]

What if the x-axis is a categorical variable, such as gender? How does one calculate the Gini-Coefficient?

[@mr.indian914]

You explained very well. These topics also included in class 12th Commerce in INDIA🇮🇳.

[@davidotniel2643]

best video in this topic hands down

[@km1dash6]

When calculating the Gini coefficient, do they exclude outliers? It seems like in the US, we have a lot of inequality, but our Gini coefficient doesn't seem that bad. Looking at it, it seems like you'd have to exclude the ultra rich, because if the minimum income is $0, the median income in the US is $55k, and the maximum income is $5B, that latter score will likely be an outlier.

[@cerkvenic]

The Gini coeficient is not linear (two times higher Gini does not mean two times higher inequality, but many times higher). What the Gini of a country means, you can see it on that country streats.

[@ncyikcvjxiw8936]

Rich people don't have incomes, they have stocks or shares. Nobody has an income of 5B$

[@parthsarthigour2725]

GREAT EXPLANATION 👌👌

[@stonecold799]

Great explanation

[@kujiYoutube]

How India is in green shade, India’s top 10% population holds 77% of country’s wealth and as per data of 2017, 73% of wealth generated in that year went to top 1%’s hands. 😿

[@anuraghaldar7793]

Can you make a video on - Kujens inverted U hypothesis

[@ShivamVerma-gq2sm]

This video is which part of the course ?

[@kinanradaideh5479]

It's difficult to believe some of the gini's of those countries. Has there been a revision or a new version of such a measure?

[@semrana1986]

wow... simply superb

[@gustavobelo4704]

great explanation!!!

[@kadaj2k7]

Thank you for this video!

[@danielgyasi6942]

Perfect explanation

[@forwhat169]

thank you for your lecture

[@ncyikcvjxiw8936]

Does the gini coefficient measure wealth or income

[@pedrofortes542]

Which year does the data on the graphic refer to?

[@Gatsbys_gyan]

Seems like something before the industrial revolution kicked in hahahahaha

[@ryanpagan1032]

I’d love to see this kind of distribution overlap with money supply and other kinds of sidelined monies.. I mean In America we have a Fiat currency.. so hypothetically the government has infinite money??

[@dvilardi]

Doesn't (stdev/mean) serve the exact same purpose? Why did Gini become so popular?

[@vismayamohandas2673]

Wow... Thank u sir.. It is the best explanation

[@sharathchandragaddam7943]

Nice explaination

[@dannyk3742]

This is a much less boring explanation than my university course!

[@sumanchowdhury6162]

How to derive lorentz curve

[@user-yz9hx9mr1x]

Very informative

[@KamiThulak]

What kind of monster draws the y-Axis on the right? Appart from that good video

[@kajalpanigrahi3519]

you are awesome :)

[@hassanishaq1998]

God bless sir...thanks a lot

[@TheMaverickanupam]

Prefer to be in one with lower income and inequality coz misery loves company

[@smartydix]

ty

[@samiz13east]

Im confused by the lorenz curve. Typically a small amount of the populations holds a lot of the wealth, thats why theyre called the 1% right? so why on the graph does a larger pop% hold more of the revenue?

[@phoenixbreakfast]

because the "Typically, small amount of the populations holds a lot of the wealth" is often true, but not always true. The "1%" is simply the wealthiest "1%" in a country, but it does not by definition own "a lot" of the wealth because "a lot" is subjective.

[@theultimatetechguy]

In reality the 1% are not the super wealthy (a taxable income of £160,000 is the 1% in the UK), the billionaires are more like the 0.1% or 0.01%

[@Josepihack]

Huh, I guess he still makes these videos...

[@miguelcorrea6786]

And they are awesome!

[@leoobeo7957]

Lower income and lower inequality, we need to prosper as a human race and get rid of relative poverty

[@Nemesis190292]

No. Humankind only need solve the absolute poverty problem. No need decrease the income or inequality. People need make merits in order to have a better income.

[@economyworldwars2521]

Thanks

[@theccpisaparasite8813]

Should have ... interesting choice of word.

[@boonewalker3973]

Makes sense

[@abdouch5032]

Just like

[@01nmuskier]

A Gini coefficient of 1 does not mean income equality. It represents an even graduation of inequality. The 1st percentile still has near 0 income. I appreciate the conclusion of this video. Low inequality is not necessarily good, if everyone is equally at zero. Inequality is not necessarily bad if there is freedom to move up economic status.

[@clap.c3313]

You never talk about politics in economics

[@01nmuskier]

@@clap.c3313 tell that to the Keynesians and modern monetary theorists.

[@mikahamari6420]

When we look at the world map, answer to the question, would you want to live in a red or green country, is evident. If you think that you could be randomly chosen, you could choose red and be lottery winner there, or if you are more risk-averse and security means a lot of to you, you would choose green. But I think this thought experiment is flawed. If you choose red, you will be on the bottom of the scale and live through, what inequality really means. The distribution of wealth is not random: in unequality the rich get richer and the poor get poorer.

[@paulmwazha9261]

brilliant presentation please pass them to my email

[@Soloohara]

better higher income and lower equality obvs

[@thesenate8268]

I would rather live in Germany or Scandinavia than in Canada or USA to be honest.

[@soniaduran7758]

Im the firs

[@silvercs9024]

first

[@armansultanov6879]

Thanks