Measuring inequality: Income Quintile Ratio

In the previous article we talked about the Gini coefficient, this coefficient uses the Lorenz curve to indicate the income inequality in a population, and it is the most widely used measure of inequality in the academy. However, other measures can give us a better idea of the inequality in a country by measuring the data in a different way, such as the Income Quintile Ratio.

The Income Quintile Ratio (IQR) is the standard used by the United Nations Development Programme (UNDP) to measure inequality. How does it work?

Continue reading “Measuring inequality: Income Quintile Ratio”