Latin America: Gini coefficient income distribution inequality, by country

Based on the degree of inequality in wealth distribution measured by the Gini coefficient, Brazil was the most unequal country in Latin America as of 2018. Brazil's Gini coefficient amounted to 53.9, followed by Honduras with 52.1. El Salvador recorded the lowest Gini coefficient at 38.6, even below Uruguay and Chile, which are some of the countries with the highest human development indexes in Latin America.

The Gini coefficient explained

The Gini coefficient measures the deviation of the distribution of income among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality. This measurement reflects the degree of wealth inequality at a certain moment in time, though it may fail to capture how average levels of income improve or worsen over time.

What affects the Gini coefficient in Latin America?

Latin America, as other developing regions in the world, generally records high rates of inequality, with a Gini coefficient ranging between 38 and 54 points according to the latest available data from the reporting period 2010-2017. According to the Human Development Report 2019, wealth redistribution by means of tax transfers improves Latin America's Gini coefficient to a lesser degree than it does in advanced economies. Wider access to education and health services, on the other hand, have been proven to have a greater direct effect in improving Gini coefficient measurements in the region.