The Lorenz curve and the Gini coefficient as measures of income inequality

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DOI:

https://doi.org/10.5377/reice.v8i15.9948

Keywords:

Income inequality, Lorenz curve and Gini coefficient.

Abstract


The Lorenz curve and the Gini coefficient are tools that are used in the field of economics to measure the income inequality of a population or society. The objective of this work was to estimate the degree of income inequality of the teachers of the Master's Program in Functional Business Administration offered by the Faculty of Economic Sciences of the National Autonomous University of Nicaragua, Managua (UNAN-Managua), taught in the Business Development Center (PROCOMIN) in 2019, through the analysis of the Lorenz curve and the Gini coefficient. The equation obtained from the Lorenz curve, which served as the basis for the estimation of the Gini coefficient, was represented by L (x) = 0.6939x ^ 2 + 0.2756x + 0.0055. On the other hand, the degree of inequality obtained by means of the Gini coefficient was 0.2618, with a degree of inequality in the income of teachers of 26.18%, being this degree relatively low, given the homogeneous conditions of the study group.

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References

Chaves, E. J. (2009). Curvas funcionales de Lorenz: Análisis datual e inferencias. TENDENCIAS Revista de la Facultad de Ciencias Económicas y Administrativas Universidad de Nariño, X(2).

Medina, F. (Marzo de 2001). Consideraciones sobre el índice de Gini para medir la concentración del ingreso. CEPAL - SERIE Estudios estadísticos y prospectivos(9).

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Published

2020-07-04

How to Cite

Brenes González, H. A. (2020). The Lorenz curve and the Gini coefficient as measures of income inequality. Revista Electrónica De Investigación En Ciencias Económicas, 8(15), 104–125. https://doi.org/10.5377/reice.v8i15.9948

Issue

Vol. 8 No. 15 (2020): Enero- Junio

Section

Research Articles

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