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A note on the Statistical Significance of Changes in Inequality

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  • Walter Sosa Escudero

    (Universidad Nacional de La Plata)

  • Leonardo Gasparini

    (Universidad Nacional de La Plata)

Abstract

This note illustrates how modern computer intensive tools like the bootstrap provide a simple and efficient way to compute interval estimates and standard errors for inequality measures. Additionally, the same methodology is used to implement a formal test of the null hypothesis of no changes in income inequality between two periods. Results are applied to the case of Argentina, where inequality varied substantially in the last decade, making crucial the issue of distinguishing sampling variability from true changes in the distribution of income. Our results show that the problem is not minor, since the observed changes un the Gini coefficients for several regions in Argentina are not statistically significant.

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Bibliographic Info

Article provided by Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata in its journal Económica.

Volume (Year): XLVI (2000)
Issue (Month): 1 (January-June)
Pages: 111-122

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Handle: RePEc:lap:journl:511

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Cited by:
  1. Gambetta, Renzo, 2009. "A Note of Growth and Inequality in Peru, 2003-2008," MPRA Paper 16986, University Library of Munich, Germany, revised 2009.
  2. Mariana Viollaz & Sergio Olivieri & Javier Alejo, 2009. "Labor Income Polarization in Greater Buenos Aires," CEDLAS, Working Papers 0089, CEDLAS, Universidad Nacional de La Plata.
  3. Leonardo Gasparini, 2005. "Assessing Benefit-Incidence Results Using Decompositions: The Case of Health Policy in Argentina," CEDLAS, Working Papers 0018, CEDLAS, Universidad Nacional de La Plata.
  4. Mariana Marchionni & Leonardo Gasparini, 2007. "Tracing out the effects of demographic changes on the income distribution," Journal of Economic Inequality, Springer, vol. 5(1), pages 97-114, April.
  5. Walter Sosa Escudero & Sergio Petralia, 2010. "“I Can Hear the Grass Grow”: The Anatomy of Distributive Changes in Argentina," CEDLAS, Working Papers 0106, CEDLAS, Universidad Nacional de La Plata.
  6. Hernán Winkler, 2005. "Monitoring the Socio-Economic Conditions in Uruguay," CEDLAS, Working Papers 0026, CEDLAS, Universidad Nacional de La Plata.

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