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### Course: AP®︎/College Microeconomics>Unit 6

Lesson 5: Inequality

# Gini Coefficient and Lorenz Curve

Learn how the Gini coefficient can be used to interpret income inequality in this video.

## Want to join the conversation?

• At , why did Sal draw the axes this way? Usually the y-axis is on the left side, but here it's on the right side of the x-axis. It just seems counterintuitive from how we've been taught to draw axes thus far. But, I'm sure there's a valid reason because that's how I see it done in other examples too. Just a little confused though.
• Because the Lorenz curve isn't a traditional coordinate plane. There are maximum values, and those values are all positive. Also, Gini measures area, so that space must be defined.
• Why not just calculate the variance of the incomes, and if the variance is very high than the inequality is very high.
What value does the Gini Coefficient add over just calculating the variance?
• Would you be able to use the Gini Coefficient for factors other than income? Various other social factors etc
• You can use it to measure occupational segregation, sort by most male of female dominated jobs and then add jobs each adding a different amount of males and females. The x-as is then males and the y-as female for example.