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The Decomposition of Income Inequality: An Analysis Based on the Northern Ireland Family Expenditure Survey for 1985

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  • Borooah, Vani K
  • McGregor, Patrick

Abstract

This paper conducts an empirical investigation into the issue of inequality decomposition, using the 1985 FES micro data tapes for Northern Ireland. It is hoped that it makes three contributions. First, by using the raw data, it permits a fairly rich disaggregation of individuals. The disaggregation employed in this paper viz. by individuals belonging to different 'family types' and individuals of different 'economic status' seems particularly relevant to social policy. Second the data also permits a disaggregation of total income by type of income: this permits one to assess, for example, how much of total inequality is caused by inequality in the distribution of income from different sources. Finally, the analysis is consistent with the existing theoretical literature on inequality decomposition. Copyright 1990 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Borooah, Vani K & McGregor, Patrick, 1990. "The Decomposition of Income Inequality: An Analysis Based on the Northern Ireland Family Expenditure Survey for 1985," Bulletin of Economic Research, Wiley Blackwell, vol. 42(4), pages 265-283, October.
  • Handle: RePEc:bla:buecrs:v:42:y:1990:i:4:p:265-83
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    Cited by:

    1. Xavier Ramos & Oriol Roca-Sagales, 2008. "Long-Term Effects of Fiscal Policy on the Size and Distribution of the Pie in the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 29(3), pages 387-411, September.

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