// Basic syntax:
ineqdeco varname

// With weights:
ineqdeco varname [weight=weightvar]

// Example:
ineqdeco income
ineqdeco income [weight=popweight]
    

1. What is the Gini Coefficient?

The Gini coefficient is a measure of statistical dispersion intended to represent income or wealth distribution of a nation's residents. It ranges from 0 (perfect equality) to 1 (perfect inequality).

2. How to Calculate in Stata

The primary command for calculating Gini coefficient in Stata is ineqdeco:

// Basic syntax
ineqdeco income_variable

// With weights
ineqdeco income_variable [weight=weight_variable]

// Save results
ineqdeco income, by(groupvar)
                    

Where:

• income_variable — Your variable containing income/wealth values
• weight_variable — Optional weighting variable (e.g., population weights)
• groupvar — Variable for subgroup analysis

3. Interpretation of Results

Results include: Gini coefficient, Theil index, mean log deviation, and other inequality measures. The Gini coefficient will be between 0 and 1.

Typical values: Developed countries 0.24-0.36, developing countries 0.30-0.50, highly unequal societies >0.50.

4. Practical Examples

Example 1: Basic calculation for household income:

use "income_data.dta"
ineqdeco hh_income
                    

Example 2: Weighted calculation by region:

ineqdeco income [weight=popweight], by(region)
                    

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between ineqdeco and fastgini?
A: ineqdeco is more comprehensive and official, while fastgini is faster for large datasets but calculates only the Gini coefficient.

Q2: How to install ineqdeco if not available?
A: Run ssc install ineqdeco to install from SSC archive.

Q3: Can I calculate Gini for subgroups?
A: Yes, use the by() option or statsby for more complex subgroup analyses.

Q4: What are common data requirements?
A: Need positive values for income/wealth. Missing values are automatically excluded.

Q5: How to visualize Gini results?
A: Use lorenz command for Lorenz curves or glcurve for generalized Lorenz curves.