Comment: On the Interpretation (and Misinterpretation) of Inequality Decompositions by Income Sources
AbstractThis paper discusses interpretations of different inequality decomposition rules when inequality is decomposed by income sources. It argues that authors of a recent article based their conclusions on misinterpreted decomposition results. It also argues that marginal effects, derived as elasticities of inequality with respect to uniform increases in income from each source, are easily interpreted and can be compared across different decomposition rules.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 39 (2011)
Issue (Month): 10 ()
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Web page: http://www.elsevier.com/locate/worlddev
income inequality; income sources; decomposition; interpretation; marginal effects;
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