## Income Inequality Measurement and Macroeconomic Perspective

Inequality is a complex problem. Although it can be difficult to quantify, the problem can be illustrated with the use of several different measures. These can be useful in allocating government spending, because they measure the inequality between groups as well as within groups. The choice of measure is also important because it may have different policy implications. A variety of databases provide data on income inequality in a variety of countries. While the availability of data is limited, most countries report their figures. While these statistics are useful, the problem with the collection and comparison of data from different countries is that they do not have a standardized method of collection. There are several methods for measuring income inequality. One method is known as the Gini coefficient, which measures…