The Gini coefficient is a measure for inequality of income distribution within a population. A high Gini coefficient indicates a more unequal income distribution. The value of the Gini coefficient varies between 0 and 1. The value 0 indicates perfect income equality, i.e. everyone has exactly the same income. A Gini coefficient of 1 indicates total inequality: one person has all the income, everyone else’s incomes are zero.
Income inequality data are based upon the Income Panel Survey conducted by Statistics Netherlands. The basis for the determination of the degree of income inequality is the standardised disposable household income.
With respect to income, Statistics Netherlands and Eurostat employ different concepts. As a result, Dutch and EU income figures are not entirely compatible. The Gini coefficient based on the Income Panel Survey is 0.27, the one based on Eurostat data is 0.28.