Figure 5: Gini coefficients, 1981 to 2005/06 (per cent):The effects of taxes and benefits on household income, 2005/06
Figure 5: Gini coefficients, 1981 to 2005/06 (per cent):The effects of taxes and benefits on household income, 2005/06
Another way of looking at how taxes and benefits change inequality is to calculate Gini coefficients - a widely used summary measure of inequality. It can take values from 0 to 100 per cent where a value of zero would indicate that each household had an equal share of income, while higher values indicate greater inequality. Inequality of disposable income was fairly stable in the first half of the 1980s then increased during the second half of the 1980s. Inequality has shown no consistent trend since the start of the 1990s.
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