Consider a population where income is unequally distributed. If a fixed amount of money is given to every single individual (for example, as a universal basic income payment), the Gini coefficient of the new, higher income distribution will be lower than the original Gini coefficient.
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Calculating Income Inequality in a Small Economy
Consider a small economy with three individuals who have annual incomes of $10, $20, and $50. Using the formula based on the average difference between all pairs of individuals, what is the Gini coefficient for this economy?
Consider a population where income is unequally distributed. If a fixed amount of money is given to every single individual (for example, as a universal basic income payment), the Gini coefficient of the new, higher income distribution will be lower than the original Gini coefficient.
Scale Invariance of an Inequality Measure