The Gini Coefficient is used to quantify the diversity which you have shown after you have built a Lorenz curve.

The formula to calculate the Gini Coefficient is given by the diagram below.

• Gini = 0 means perfect equality
• Gini = 1 means total inequality

Note: you can calculate the area by counting approximately the squares and half squares on the graph paper

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Let's use the sample example as the one used to build Lorenz curves: you can calculate the area by counting approximately the squares and half squares on the graph paper.

City Block #1: Gini (1) = 25 / 45 = 0.56
City Block #2: Gini (2) = 18 / 45 = 0.40

The Gini Coefficients confirm that city block #2 has more evenly distributed activities than city block #1