The GINI coefficient in the country declined from 0.4881 in 1997 to 0.4814 in 2000, a decrease of about 1.4 percent. This indicates a movement towards a more equal income distribution in the Philippines.

Income distribution was least equal in Zamboanga del Norte, with a GINI coefficient of 0.5355, followed by Leyte, 0.5220 and South Cotabato, 0.5161.

It should be noted, however, that based on data, the level of inequality of income distribution of a province is not necessarily indicative of the level of its poverty incidence. One good example is the 2nd District of NCR, which ranked as the 10th worst area in the country in terms of equality in income distribution but has the lowest poverty incidence in the country (Table). Zamboanga del Norte, ranked the 19th poorest province among the 81 provinces/areas and it had the worst income distribution in 2000.

Table 1. Ten Provinces With Highest GINI Coefficient, 2000

Source: Social Sectors B Division, NSCB

Notes on this Release:
• 1st District - Manila
• 2nd District - Mandaluyong, Marikina, Pasig, Quezon City, and San Juan
• 3rd District - Valenzuela, Caloocan City, Malabon, and Navotas
• 4th District - Las Pinas, Makati, Muntinlupa, Paranaque, Pasay City, Pateros, and Taguig

Sulu had the lowest GINI coefficient of 0.2444 (Table 2). Although the poorest, a more equal income distribution was observed in Sulu. The other provinces with the lowest GINI coefficients were Lanao del Sur, 0.2709 followed by Basilan, 0.2826.

Table 2. Ten Provinces With Lowest GINI Coefficient and Their Poverty Incidence, 2000

Source: Social Sectors B Division, NSCB

A scatterplot of the poverty incidence rates and the GINI coefficients is shown in Figure 1. Visual examination suggests a rather weak positive relationship with some outliers to the left.

Figure 1. Poverty Incidence vs GINI Coefficient, 2000

Source: Social Sectors B Division, NSCB

Gini Coefficient - the ratio of the area between the Lorenz curve and the diagonal (the line of perfect equality) to the area below the diagonal. It is a measure of the inequality in income distribution, with limits 0 for perfect equality and 1 for perfect inequality.