The Gini coefficient of income measures the inequality of distribution of real household incomes in Germany.
The indicator is an established, internationally comparable way of measuring income inequality. It is measured on a scale of zero to one. The higher the value, the greater the inequality. A value of zero indicates that all citizens have an identical income. A value of one indicates that one person has all the disposable income. The effectiveness of redistributive policies is measured by comparing the Gini coefficients before and after taxes and transfers.
The data source is the Socio-Economic Panel (SOEP). As the indicator refers to household income, changes in household structures may influence the data over time.