Inequality indicators: from Gini to Atkinson and Palma

Abstract

This paper explores the theoretical and methodological framework of income inequality indicators, emphasizing their relevance for assessing socioeconomic disparities in the Republic of Moldova. As the country experiences deepening stratification due to market transitions, the need for robust statistical tools becomes increasingly important. The study aims to analyze and systematize the principal indicators used to quantify inequality, including the Gini coefficient, Lorenz curve, Atkinson index, Palma ratio, Theil index and income ratios by quintiles and deciles. These indicators reflect various dimensions of inequality and offer complementary perspectives for policy design. The methodological approach combines theoretical analysis with a critical evaluation of empirical applications, particularly in the Moldovan context. The paper discusses the benefits and limitations of each indicator, highlighting how methodological choices can influence the interpretation of inequality dynamics. Results demonstrate that reliance on a single metric may obscure important aspects like polarization and distributional asymmetries. By integrating complementary measures, such as decomposition techniques and sensitivity to income distribution tails, the study provides a more nuanced understanding of inequality. This work contributes to the refinement of inequality measurement systems and supports the development of evidence-based policies aimed at reducing income disparities and promoting inclusive socioeconomic development. The article was elaborated within the Project selected in competition "Stimulating excellence in scientific research 2025-2026" 25.80012.0807.37SE "The perfection of instruments for reducing income inequality and reducing poverty of the population in the process of European integration of the Republic of Moldova", institutional funding, ANCD.