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Non-Hierarchical Bivariate Decomposition of Theil Indexes

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  • Kam Ki Tang

    ()
    (The University of Queensland)

  • Dennis Petrie

    ()
    (The University of Dundee)

Abstract

This paper develops a method to conduct non-hierarchical bivariate decomposition of Theil indexes. The method has the merits that, first, it treats all variates symmetrically and therefore facilitates the comparison of inequalities associated with different variates and, second, it highlights the interaction between variates in the creation of inequality. The method is applied to measure gender and ethnic income inequality in Australia.

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P41.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 2 ()
Pages: 918-927

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Handle: RePEc:ebl:ecbull:eb-08d30008

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  1. Mishra, Padmaja & Parikh, Ashok, 1992. "Household Consumer Expenditure Inequalities in India: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(2), pages 225-36, June.
  2. Adelman, Irma & Levy, Amnon, 1984. "Decomposing Theil's Income of Income Inequality into Between and Within Components: A Note," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(1), pages 119-21, March.
  3. Pedro Conceicao & James K. Galbraith, 2000. "Constructing Long and Dense Time-Series of Inequality Using the Theil Index," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 61-74, Winter.
  4. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  5. Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 47(3), pages 521-31, April.
  6. Cowell, Frank A. & Kuga, Kiyoshi, 1981. "Additivity and the entropy concept: An axiomatic approach to inequality measurement," Journal of Economic Theory, Elsevier, vol. 25(1), pages 131-143, August.
  7. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
  8. Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer, vol. 37(1), pages 55-77, 02.
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Cited by:
  1. Takahiro Akita & Sachiko Miyata, 2013. "The Roles of Location and Education in the Distribution of Economic Well-being in Indonesia: Hierarchical and Non-hierarchical Inequality Decomposition Analyses," Working Papers EMS_2013_15, Research Institute, International University of Japan.

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