Economic inequality is defined as the difference of several measures of economic welfare among individuals in a population. Inequality tends to have several negative effects on a society such as the loss of social cohesion, rising crime rates, and reduced economic growth. So, how do we solve it?
In order to solve a problem we first have to analyze it, and the most used measurement tool for inequality is the Gini coefficient, created in 1912 by the Italian statistician Corrado Gini. Let’s see how it works.