In this paper i present a new stata command called lorenz that estimates lorenz and. For each unit, i have the overall population, as well as the population of a particular minority group. Stata module to compute gini index with within and betweengroup inequality decomposition. Confidence intervals for the population gini coefficient can be calculated using bootstrap techniques.
The spatial gini coefficient is a simple, objective, spatially explicit and globally available empirical measurement of human wellbeing derived solely from nighttime satellite imagery and population density. Gini coefficients available wid world inequality database. The thing is, i couldnt find any solution for calculating gini coefficient with the goal to have finaly the following output for example. The lowest 10% of earners make 2% of all wages the next 40% of earners make 18% of all wages the next 40% of earners make 30% of all wages the highest 10% of earners make 50% of all wages. Africa is one of the most unequal countries in the world with a gini coefficient of 63. After all, descriptive data were analyzed by excel software, version 20 and gini index and lorenz curve was computed using distributive analysis stata package dasp in stata software, version 12. To illustrate, i have posted below the results of logit and logistic using womenwk. The gini coefficient is a measure of inequality of a distribution. Momo, if you are interested in decomposition by sources you could also use descogini alejandro 20101119 sergiy radyakin. Sampling weight is optional, and can be included as an aweight. Thanks to zurab for pointing my attention towards the paper by karagiannis and kovacevic referenced in their. In economics, the gini coefficient, sometimes called the gini index or gini ratio, is a measure of statistical dispersion intended to represent the income or wealth distribution of a nations residents, and is the most commonly used measurement of inequality. There is increasing recognition that the distribution of wealth and income amongst the population in a nation or region correlates. Estimating lorenz and concentration curves in stata.
Munich personal repec archive cointegration analysis of oil prices and consumer price index in south africa using stata software sukati, mphumuzi ministry of agriculture. She asked if i know a stata command that tests the significance between the difference of two gini coefficients. The command is available online for installation in netaware stata. Stata program atkinson, inequal, lorenz, relsgini these four adofiles provide a variety of measures of inequality. I know that most of the time people use time series crosssectional models to compute a correlation between a gini coefficient and a discussion topic. The gini coefficient is a measure of the inequality of a distribution often used for income or wealth distributions. The gini, which provides a synthetic measure of inequality, ranges from 0 in case of perfect equality to 1 a situation in which one person captures all resources in an economy. You can do anything pretty easily with r, for instance, calculate concentration indexes such as the gini index or display the lorenz curve dedicated to my students. The gini coefficient measures the inequality among values of a frequency distribution. The program igini1 generates a new dataset of the same size as the input data, containing six variable.
The gini coefficient is defined using the lorenz function. Calculating gini coefficient of world income inequality. The lorentz curve is a graphical representation of this inequality which is intimately related to the gini coefficient. Table 4 shows the optimal mrcs determined by the gini coefficient values using the northeastern usa benchmark data with either 600 or 6000 total cases. Calculating the gini coefficient from lis data in stata. For future reference, you might want to use scsomersd rather than somersd to calculate the gini coefficient with confidence limits. 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. 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.
I have data on disposable income, where some households have negative income. The range of the gini coefficient goes from 0 no concentration to \\sqrt\fracn1n\ maximal concentration. I have a data set where each case represents a district, or unit, in a city. The small sample variance properties of the gini coefficient are not known, and large sample approximations to the variance of the coefficient are poor mills and zandvakili. My question is, how i can calculate gini coefficient in stata for every. In this paper i present a new stata command called lorenz that estimates lorenz and concentration curves from individuallevel data and, optionally, displays the results in a graph. Stata provides ado files that will calculate the gini coefficient as well as. Formula of computing the gini coefficient in fastgini stata. Yet, i have read some articles that make an appealing case for using multilevel regression models in such cases.
A friend asked me a question related to this weeks ago. The gini coefficient is derived from the lorenz curve, which sorts the population from poorest to richest, and shows the cumulative proportion. Roger aliagadiaz and silvia montoya additional contact information silvia montoya. Compare the lorenz curves for the populations 10, 20, 35, 35 and 15, 15, 30, 40. Cointegration analysis of oil prices and consumer price. Program di income distribution ii exercise program define bottop. Data analysis with stata 12 tutorial university of texas. The bias corrected gini coefficient goes from 0 to 1. You could use ineqdeco directly, with its by option to get the. Also from table 1, the estimates of the gini index for lognormal distribution was found to be between 0. In this assignment, we study income inequality in the united states using the gini coefficient. It is defined as a ratio with values between 0 and 1. A stata package for measuring inequality from incomplete. If you type, in stata, findit lorenz then you will find a choice of programs to plot a lorenz curve.
A gini value of 0% means that the characteristic cannot distinguish good from bad cases, eg. Used in calculations quantile group shares, cumulative shares lorenz ordinates, generalized lorenz ordinates, and gini number of strata 1 number of obs 9772 number of psus 9772 population size 54872650. Calculate the gini index on total disposable income for finland and the us in 2000. Sampling distribution of gini coefficient rbloggers. Estimating lorenz and concentration curves in stata ben jann institute of sociology university of bern ben. Ibm how to calculate the gini index of similaritysegregation.
I disagree on the latter point because i think that the gini coefficient is actually the logical extension of his approach of looking at the cumulative income or wealth of the bottom 50%, next 40% etc. Gini coefficient and the lorentz curve file exchange. Using gini coefficient to determining optimal cluster. Income distribution and environmental quality in china. I mean, without decomposing into within and between groups, i want to estimate only the gini with the by option. Stata module to compute gini index with within and. Gini index world bank estimate world bank, development research group. What happens to the gini coefficient as i add many higherincome people. The study calculated the gini coefficient of 31 province using a data set of 403 city level data in mainland china and estimated the linkage between income distribution and environmental deterioration utilizing balanced data for 31 chinese provinces during the period 19962015. The contents of the supporting files programs, datasets, and help files. The gini coefficient is widely used to measure inequality in the distribution of income. Estimation of the gini coefficient for the lognormal. Albeit i can immediately compute the gini with these dataset e. The gini index or gini coefficient is a statistical measure of distribution which was developed by the italian statistician corrado gini in 1912.
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. Is the observed difference in the the gini coefficient a real reduction in inequality in income distribution or is it only due to sampling variations. Stata module to calculate gini coefficient with jackknife standard errors. 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. This note describes syntax, formulas and usage examples. Although i did not explain it during my lectures, calculating a gini index or displaying the lorenz curve can be done very easily with r. This document is an introduction to using stata 12 for data analysis. I am trying to compute gini coefficient for groups in a single table to. Notes on how to compute gini coefficient suppose you are given data like this. Or is there any other easy way to compute only the gini coefficients in stata with such by options. Gini comments the gini index ranges between 0 and 1, with inequality increasing with an increasing index. Sgini and concentration coefficients from unitrecord data not grouped. I need to calculate the gini coefficient from disposable personal income data at lis. Open access, high quality wealth and income inequality data developed by.
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. This is the second of two stata tutorials, both of which are. Calculus i introduction to the gini coefficient the gini coefficient or gini index is a commonlyused measure of inequality devised by italian economist corrado gini in 1912. I had seen the command inequal but this doesnt have a by option. It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper variability and mutability. The gini coefficient is widely used to measure inequality in the distribution of income, wealth, expenditures, etc. Rating is available when the video has been rented.
Like the relative mean difference, there does not exist a sample statistic that is in general an unbiased estimator of the population gini coefficient. According to a lis training document, the stata code to do this is. Census data focusing on wealth inequality rely on the gini coefficient. In our story, we only have 10 people in our example population. Using this command, the gini coefficient for total income can be decomposed in three terms. Statistical software components from boston college department of economics. 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 scsomersd package is downloadable from ssc, and calculates the gini coefficient in one line, as.
Data analysis with stata 12 tutorial november 2012. In addition to the main outcome variable, the bygroup is typically required. For more information and methodology, please see povcalnet. As shown in the table, as the number of counties in the cluster increases, the percent of. You could use ineqdeco directly, with its by option to get the ginis for each subgroup. Based on keyness absolute income hypothesis, this paper, with the help of eviews6.
Generalized gini and concentration coefficients with factor. Since the odd ratios can be computed in terms of the coefficient, b as eb, the choice between the two is just a matter of preference. Quantile group shares, cumulative shares lorenz ordinates. It is used as a gauge of economic inequality, measuring income distribution among a population. If there were, say, 100 million people in the country, and one person had all the income, then the gini coefficient would be 0. The highest possible gini coefficient is 1 and this implies 1 person gets all the income. Gini coefficient and lorenz curve explained towards data. Using gini coefficient to determining optimal cluster reporting sizes for spatial scan statistics. A program you havent mentioned is somersd, which can also be used to calculate gini coefficients, and can be downloaded from ssc. Calculating gini coefficients statalist the stata forum. One option is to use the command ineqdeco after install it in your stata.
The gini coefficients in ginidesc are calculated using my program ineqdeco. A value of 0 means there is a completely equal distribution of income. Stata is a software package popular in the social sciences for manipulating and summarizing data and conducting statistical analyses. Their gini coefficients are the same, but i think that this is a weakness of the indexi think the latter is a more equitable income distribution. Goods bads bad rate phone 80% 80% 15% no phone 20% 20% 15% a gini value of 100% means that a characteristic. Does anyone have idea how to compute gini coefficient for groups. Abstract lorenz and concentration curves are widely used tools in inequality research. Calculating gini coefficient of worldincome inequality with stata replicating and extending arrighidrangel findings with stata software related issues. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. Hence, the gini coefficient computes the difference between all available income pairs in the data and calculates the total of all absolute differences. Statistical software components s456814, department of. Equity analysis of hospital beds distribution in shiraz. The gini coefficient the gini coefficient is a statistic which measures the ability of a scorecard or a characteristic to rank order risk.