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Inequality

The Gini index was 36.7 in 2014. The Gini index is one of the most commonly used measures of inequality. Its value ranges from a 0 to 100 with the value of 100 corresponding to perfect inequality and value of 0 corresponding to perfect equality. However, one shortcoming of the Gini is that it does not satisfy the additive decomposability property, which is often useful in practical applications to show the sources of inequality. There is an entire class of generalized entropy measures of inequality that satisfies these decomposability properties. Theil L, which is also the GE (0) measure or the mean log deviation, was 22.2. Likewise, the Theil T index, or GE (1), was 25.5 (Table 7).

Table 7: Inequality measures, 2014

Gini	36.7
Theil L – GE (0)	22.2
Theil T – GE (1)	25.5

Source: World Bank staff calculations based on HBS 2014.

Inequality in urban areas is higher than inequality in rural areas, suggesting more unequal consumption distribution in urban areas. The Gini measurement was 37 for urban and 30.6 for rural areas. Similarly, Inequality within urban and rural areas explained a large share of the overall inequality (Table 8).

Table 8: Inequality measures 2014

	Urban	Rural	Within	Between
Gini	37	30.6	..	..
Theil L- GE (0)	23	15.4	17.7	4.5
Theil T- GE (1)	25.6	16.8	20.7	4.7

Source: World Bank staff calculations based on HBS 2014.