This component measures the inequality in income distribution in Germany. Therefore the Gini-Coefficient of the annual net-household-equivalent-income of the population (private households) is taken. The Gini-Index is standardized: 2000 = 100.

Description and meaning of the component

The income distribution is important as a weighting factor (the only one in the NWI) for private consumption expenditure, i.e. component 2.