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The Disaggregation of the Gini Coefficient by Factor Components and Its Applications to Australia

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  • Podder, Nripesh
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    Abstract

    This paper demonstrates the proper use of the disaggregation of the Gini coefficient by factor components by deriving a formula of the elasticity of the Gini coefficient with respect to specific income components. The method is then applied to Australian household expenditure survey data to find the effects of various components of income on overall income inequality. The results are important in examining the effects of growth in specific components on the overall inequality and, hence, in policy decisions with respect to redistribution of income. Copyright 1993 by The International Association for Research in Income and Wealth.

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    Bibliographic Info

    Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

    Volume (Year): 39 (1993)
    Issue (Month): 1 (March)
    Pages: 51-61

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    Handle: RePEc:bla:revinw:v:39:y:1993:i:1:p:51-61

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    Cited by:
    1. Yunbo Zhou, 2009. "The factors that impact income inequality of rural residents in China: Decomposing the Gini coefficient from income components," Frontiers of Economics in China, Springer, Springer, vol. 4(4), pages 617-632, December.
    2. Kimhi, Ayal, 2011. "Comment: On the Interpretation (and Misinterpretation) of Inequality Decompositions by Income Sources," World Development, Elsevier, Elsevier, vol. 39(10), pages 1888-1890.
    3. Ayal Kimhi & Moran Sandel, 2011. "Religious Schooling, Secular Schooling, and Household Income Inequality in Israel," Working Papers, AlmaLaurea Inter-University Consortium 29, AlmaLaurea Inter-University Consortium.
    4. Cecilia García-Peñalosa & Elsa Orgiazzi, 2013. "Factor Components of Inequality: A Cross-Country Study," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 59(4), pages 689-727, December.
    5. Kimhi, Ayal, 2009. "Land Reform and Farm-Household Income Inequality: The Case of Georgia," Discussion Papers, Hebrew University of Jerusalem, Department of Agricultural Economics and Management 54159, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    6. Wagstaff, Adam & Van Doorslaer, Eddy & Watanabe, Naoko, 2001. "On decomposing the causes of health sector inequalities with an application to malnutrition inequalities in Vietnam," Policy Research Working Paper Series 2714, The World Bank.
    7. Podder, Nripesh & Chatterjee, Srikanta, 2002. "Sharing the national cake in post reform New Zealand: income inequality trends in terms of income sources," Journal of Public Economics, Elsevier, Elsevier, vol. 86(1), pages 1-27, October.
    8. Essama-Nssah, B., 2002. "Assessing the distributional impact of public policy," Policy Research Working Paper Series 2883, The World Bank.
    9. Immervoll, Herwig & Levy, Horacio & Nogueira, José Ricardo & O'Donoghue, Cathal & Siqueira, Rozane Bezerra de, 2006. "The Impact of Brazil's Tax-Benefit System on Inequality and Poverty," IZA Discussion Papers 2114, Institute for the Study of Labor (IZA).
    10. Ivica Urban, 2014. "Contributions of taxes and benefits to vertical and horizontal effects," Social Choice and Welfare, Springer, Springer, vol. 42(3), pages 619-645, March.
    11. Stéphane Mussard, 2006. "La décomposition des mesures d’inégalité en sources de revenu : l’indice de Gini et les généralisations," Cahiers de recherche, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke 06-05, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.

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