Page 139 - U4SSC KPIs Verification Manual - A guide for verifiers

Dimension Society and Culture
Sub-Dimension Safety, Housing and Social Inclusion

Category Social Inclusion
KPI Name Gini Coefficient
KPI No. SC: SH: SI: 2C Type: Core Type: Structural

Definition / Income distribution in accordance with Gini coefficient
Description

Rationale / Gini Coefficient measures income distribution and is used to assess the extent to
Interpretation/ which income is distributed equally among the population.
Benchmarking
“The Lorentz curve plots the percentage of total income earned by various portions
of the population when the population is ordered by the size of their incomes”.
(Econometria)

Possible outcomes range from zero to one.
Zero (0) representing a perfectly equal distribution of income, while one (1)
represents one person in the population having access to all income.

Source(s) NOTE – Econometria. A general definition of the Lorenz Curve. Retrieved
from <https:// www .jstor .org/ stable/ 1909675 ?seq = 1 #page _scan _tab _contents>
Methodology Calculate as:

Numerator: Area between 45-degree line and Lorenz curve.
Denominator: Entire area below 45-degree line.

Unit Number
Data Sources World Bank, OECD: Income distribution database.
/ Relevant
Databases
SDG SDG Target 10.2: By 2030, empower and promote the social, economic and
Reference(s) political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin,
religion or economic or other status.

Verification Check data source.
Guidance
NOTE:
Most cities will report just the actual Gini coefficient.
Check data collection template.
Value must be between 0 and 1.

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