2016•Journal of education financeRequires access
Measurement of Inequality: The Gini Coefficient and School Finance Studies
Raymond L. Lows
Open publisher page 5 citations
Abstract
in the measurement of social inequality as a function of the unequal distribution of wealth and incomes led to the development of the Lorenz curve1 and the Gini coefficient.2 A Lorenz curve is a graphical representation of the distribution of the cumulative proportion of wealth (or income) associated with the cumulative proportion of a population. A Gini coefficient, on the other hand, is a unique numerical value which is used as an index of inequality associated with a particular Lorenz curve. Whereas a unique Gini coefficient is associated with each Lorenz curve, it is possible to generate an infinite number of Lorenz curves associated with each unique Gini coefficient. The purposes of the paper are: (1) to discuss the basic assumptions of these inequity measures as applied in school finance studies, and (2) to suggest minor modifications in conceptualization of the measures. Lorenz described the graphical method of measuring the concentration of wealth as follows: