It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper. Gini coefficient and the lorentz curve file exchange. Use excel to produce the lorenz curve and calculate gini coefficient. Storing the predictions and coefficients from stata for n. Notes on how to compute gini coefficient suppose you are given data like this. Economic correlates of violent death rates in forty. Dear statalisters i use stata to calculate the gini coefficient and i found this command somersd, but actually i dont know how to do the inequality graph by stata. While a perfect scenario would be that of equality in income distribution, this is not normally the case in most of the areas around the world. As lis has grown, the analysis of government policy, poverty, and inequality has been updated for. Or is there any other easy way to compute only the gini coefficients in stata with such by options.
If a 0, it means the lorenz curve is actually the line of equality. By decomposing this measure you can better understand the determinants of inequality. You are expected to adjust the code such that you can reproduce the experiment for the other periods. This site was created to provide easy access to papers, presentations and program packages by roger newson, some of which might not be easily accessible elsewhere. The gini coefficient is an effective means of measuring inequality, but there are some limitations. Spssx discussion in reply to your gini index calculation in. Doing this for 10 bins is the equivalent of calculating a gini coefficient directly from decile data such as in the laknermilanovic dataset. A token fix for that is to record the associated variable names alongside, as done above.
The gini coefficient is derived from the lorenz curve, which sorts the population from poorest to richest, and shows the cumulative proportion. The more unequal a countrys income distribution, the higher its gini index, e. The gini coefficient is a commonlyused measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1. Calculating the gini coefficient from lis data in stata stack. Income inequality was measured by tractlevel gini coefficient and countylevel gini coefficient, constructed from the 2000 u. The thing is, i couldnt find any solution for calculating gini coefficient with the goal to have finaly the following output for example. Datasets of gini coefficients calculated through a multiple imputation method. Sampling weight is optional, and can be included as an aweight. However, from your description, you can can get such a sum without a macro by. The gini excel coefficient value can range from 0 to 1 and is half the relative mean difference rmd. Sep 02, 2012 stata program atkinson, inequal, lorenz, relsgini these four adofiles provide a variety of measures of inequality. Generally, there are several ways to calculate the gini index. Gini coefficient and lorenz curve pdf download, cambridge international as and alevel chemistry course book free download ae94280627 estimation of the gini coefficient for the lognormal distribution of income using the.
One option is to use the command ineqdeco after install it in your stata. Swiid the standardized world income inequality database. Groupvar is a categorical variable not string who determines the. The gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. A program you havent mentioned is somersd, which can also be used to calculate gini coefficients, and can be downloaded from ssc. Stata module to compute gini index with within and. Feb 24, 2010 the gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. A score of 1 would represent complete inequality, i. The code below can calculate the alphacoefficient of concentration for a given year say, 1970. Jan 05, 2002 the gini coefficient for households was the main independent variable of interest. The gini coefficients main advantage is that it is a measure of inequality by means of a ratio analysis, rather than a variable unrepresentative of most of the population, such as per capita income or gross domestic product. To do this in a stata session, type ssc desc somersd for a brief description, and ssc install somersd, replace to install the package, and net get somersd to copy the 3. The gini coefficient is a measure of inequality of incomes or sometimes wealth across individuals. Gini for users of stata, there is a gini command that may be downloaded and used directly see appendix 3.
The gini index or gini coefficient is a statistical measure of distribution developed by the italian statistician corrado gini in 1912. The gini regression has its origin in corrado gini s 1912 introduction of the gini mean difference gmd as an alternative to the variance. Thus for instance if there were two households then to get. I want to calculate the gini coefficient weighted by population. I need to calculate the gini coefficient from disposable personal income data at lis.
Stata program atkinson, inequal, lorenz, relsgini these four adofiles provide a variety of measures of inequality. Country comparison distribution of family income gini. I suggest a stata dofile to compute the hill estimator mentioned in prof. Measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution. In this article, we derive the elasticity of the gini index with respect to changes in subgroup incomes for subgroups that are characterized by significant income separation. I havent used the gini coefficient in the last 25 years, so i cant give more complete advice. This is similar to calculating the gini coefficient for wage separately for each combination of team and year.
Aug 19, 2017 then i divided the data up into between 2 and 100 bins, took the means of the bins, and calculated the gini coefficient of the bins. This command also has the advantage that it allows one to use weights, which are not incorporated into the two equations shown above. The lma curve enables us to see how the gini covariance the numerator of the gini regression coefficient is composed. We will suggest some basic methods to calculate the hill estimator, the lorenz curve, and the gini coefficient. My question is, how i can calculate gini coefficient in stata for every team in. In 2006, wage employment income source source gini of about 0.
Gini coefficients available wid world inequality database. Hello all, does anyone have any ideas on how the formula for the gini coefficient could be expressed in excel. Stata, lorenz, lorenz curve, concentration curve, inequality, income. Stata should use the wages of the same team in the same year and so on year team ginicoefficient i am using numbers for teams, instead of team names. The best way to become a millionaire in five years or less 02. Estimating lorenz and concentration curves in stata. I couldnt find a solution that works with both multiple imputed data and survey weighted data. Crossnational research on the causes and consequences of income inequality has been hindered by the limitations of the existing inequality datasets. Mar 20, 2020 gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. Generalized gini and concentration coefficients with factor.
Generalized gini and concentration coe cients with factor decomposition in stata philippe van kerm cepsinstead, luxembourgz september 2009 revised february 2010 abstract sgini is a userwritten stata package to compute generalized gini and concentration coe cients. The module is made available under terms of the gpl v3. The resulting elasticity, which is structurally similar to that of the empirically popular lerman and yitzhakis 1985 elasticity for gini incomesource decomposition. The lorentz curve is a graphical representation of this inequality which is intimately related to the gini coefficient. Pdf generalized gini and concentration coecients with.
Jun 30, 2010 the gini coefficient is a measure of the inequality of a distribution often used for income or wealth distributions. Gini index world bank estimate world bank, development research group. In the madeup example below inspired by carlos post i use the userwritten ineqdeco command to calculate gini coefficients for price in the auto dataset, separate for each combination of foreigndomestic and reputation1 to 5. Estimating gini coefficient when we only have mean income by. The code below can calculate the alphacoefficient of concentration for a given. This approach allows the calculation of the impact that a marginal change in a particular income source will have on inequality. Stata module to compute gini index with within and betweengroup inequality decomposition, statistical software components s372901, boston college department of economics. The gini coefficient ranges from 0 to 1 and measures the degree of income inequality. Hence, the gini coefficient computes the difference between all available income pairs in the data and calculates the total of all absolute differences. A lorenz plot is produced when a single variable is specified for analysis, otherwise the summary statistics alone are displayed for a group of. Bootstrapped standard errors of the estimated impacts on inequality can easily be obtained. Gini index world bank estimate brazil world bank, development research group. The gini coefficient for households was the main independent variable of interest. This statistic shows the gini coefficient, an index for measuring income distribution, for u.
Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. I mean, without decomposing into within and between groups, i want to estimate only the gini with the by option. I need to calculate the gini coefficient of net wealth for each country in the hfcs database. A score of 0 on the gini coefficient represents complete equality, i. Groupvar is a categorical variable not string who determines the subgroups in which the population will be divided. Obesity was measured by a categorical variable indicating obesity status bmi. The data set to be used is the same from the problem set 4. Calculating gini coefficients statalist the stata forum. A popular measure of inequality is the gini coefficient, which ranges from 0 perfect equality to 1 perfect inequality, but is typically in the range of 0. Decomposing this measure can help you understand the determinants. Today i will show the use of a user written command descogini to decompose the gini. In addition to the main outcome variable, the bygroup is typically required. A gini coefficient of 0 expresses perfect equality, where all.
The gini coefficient is widely used to measure inequality in the distribution of income, wealth, expenditures, etc. A value of 0 represents absolute equality, a value of 100 absolute inequality. This command decomposes the gini coefficient by income source using the approach described in lerman and yitzhaki 1985 and in stark, taylor and yitzhaki 1986. Roger newsons resource page at imperial college london. This adofile provides the gini coefficient for the whole population, for each subgroup specified in groupvar, and its pyatts 1976 decomposition in between, overlap and withingroup inequality. Tract and countylevel income inequality and individual. Applied econometrics at the university of illinois. This note describes syntax, formulas and usage examples. However, american factfinder no longer exists you will need to access the data through the us census site, and it is a navigational nightmare. It is a revised and upgraded version of inequal published by edward whitehouse in stb23. Calculating the gini coefficient from lis data in stata ask question asked 6 years, 11 months ago. This module may be installed from within stata by typing ssc install ginidesc.
And when i type findit gini, what are these, some programms to download. You can use the instructions to download the data provided in etutorial. Does anyone have idea how to compute gini coefficient for groups. Thanks for help momo, you may be interested in adept inequality, which is a program based on. Spss macro for computing gini coefficient of inequality. I had seen the command inequal but this doesnt have a by option. In this paper i present a new stata command called lorenz that estimates lorenz and. In this video i introduce the ideas of the lorenz curve and gini coefficient for measuring income inequality.
Where can i find the gini coefficient of all us counties. Estimating lorenz and concentration curves in stata ben jann institute of sociology university of bern ben. The gini coefficient is widely used to measure inequality in the distribution of income, consumption, and other welfare proxies. Note that with this way of recording results, the gini coefficients are not aligned with anything else. The ginireg package supports the estimation of gini regressions. The marginal effects in subgroup decomposition of the gini. Income inequality in the philippines, as measured by the gini coefficient, declined from 46. Thanks to zurab for pointing my attention towards the paper by karagiannis and kovacevic referenced in their. A friend asked me a question related to this weeks ago. To see this, consider the criteria that make a good.
I also describe some difficulties with using it as a way to track income inequality. Distribution of family income gini index measures the degree of inequality in the distribution of family income in a country. A more advanced version of this solution would be to use postfile to save to a new dataset. A lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual.
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