Income To Meet The Gap

Italian statistician Corrado Gini developed Gini coefficient in his 1912 paper"Variability and Mutability". Gini coefficient used as a measure of inequality of income distribution or inequality of wealth distribution. It is defined as a ratio with values between 0 and 1.0 corresponds to perfect equality and 1 corresponds to perfect inequality. If a country's Gini coefficient is more than 0.4,then it is at the risk of crisis. According to the data released by the World Bank, China's Gini coefficient passed the 0.4 guard line in 2000, and goes to an even higher level from then on. But our economic grows at a rapid pace and maintains healthy. Why? This paper introduces two indicators——income satisfaction and income satisfaction inequality. Gini coefficient, mean of income satisfaction and income satisfaction inequality of America, Russia, Germany and countries of 1990WVS are calculated separately, based on data GSS/GSOEP/WVS/RUSSET. Then I analyse the correlations of the three indices from one to each other. The correlation between mean of income satisfaction and income satisfaction inequality is significant negative. Other correlations are not consistent. A correlation in some countries maybe is significant, but in other countries maybe weak, sometimes maybe in the opposition side. Through analyse the historic data of America, Russia, Germany and the horizontal data of WVS1990,the writer found that a country's economic performance of the years which Gini coefficient is high maybe more stable than the years which Gini coefficient is at a lower level. It is also suitable for the case among countries. For a country, if its Gini coefficient is high, but its mean of income satisfaction is also high and meanwhile income satisfaction inequality, then its social economic will still be stable. On the contrary, the social economic maybe will face a crisis. But if the three indices of a country both go bad in a year, the country is in trouble. The combination of the three indices can describe a country's social economic nicely. In our country now, public life is recognized as the most important thing of political policy. The writer intend to provide a valuable reference for domestic survey and research.