Socio-economic inequality: Relationship between Gini and Kolkata indices

TL;DR

This paper explores the relationship between the Gini and Kolkata indices, two measures of socio-economic inequality, using empirical data and analytical methods to understand their connection and significance.

Contribution

It provides the first detailed analysis of the relationship between Gini and Kolkata indices through empirical data and analytical estimates.

Findings

The Gini and Kolkata indices are mathematically related.

Empirical data shows a consistent relationship between the two indices.

The relationship highlights the significance of the Kolkata index in inequality measurement.

Abstract

Socio-economic inequality is characterized from data using various indices. The Gini ($g$) index, giving the overall inequality is the most common one, while the recently introduced Kolkata ($k$) index gives a measure of $1-k$ fraction of population who possess top $k$ fraction of wealth in the society. Here, we show the relationship between the two indices, using both empirical data and analytical estimates. The significance of their relationship has been discussed.