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Note on the Decomposition of Gini Inequality

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Author Info
Sastry, D V S
Kelkar, Ujwala R

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Abstract

The purpose of this note is to propose a decomposition of the Gini index of inequality into within and between subpopulations using the Lerman-Yitzhaki covariance method. The present method suggests that once the population is arranged in ascending order of income and assigned ranks, the same ranks will be used to calculate total as well as between inequality. In this way, it differs from the one suggested by Jacques Silber (1989) in the measurement of between inequality and, thereby, in the interaction term. Copyright 1994 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 76 (1994)
Issue (Month): 3 (August)
Pages: 584-86
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Handle: RePEc:tpr:restat:v:76:y:1994:i:3:p:584-86

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  1. Miguel Székely, 1997. "Policy Options for Poverty Alleviation," RES Working Papers 4062, Inter-American Development Bank, Research Department. [Downloadable!]
  2. Branko milanovic, 2003. "True world income distribution, 1988 and 1993: First calculation based on household surveys alo," HEW 0305002, EconWPA. [Downloadable!]
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  3. William Griffiths, 2008. "On Dagum’s Decomposition of the Gini Coefficient," Department of Economics - Working Papers Series 1054, The University of Melbourne. [Downloadable!]
  4. Kwang Soo Cheong, 1999. "A Note on the Interpretation and Application of the Gini Coefficient," Working Papers 199901, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
  5. Kwang Soo Cheong, 1999. "Economic Crisis and Income Inequality in Korea," Working Papers 199906, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
  6. Geoffrey Warner, 2001. "A lorenz curve based index of income stratification," The Review of Black Political Economy, Springer, vol. 28(3), pages 41-57, December. [Downloadable!] (restricted)
  7. Paul Makdissi & Stéphane Mussard, 2006. "Decomposition of s - Concentration Curves," Cahiers de recherche 0641, CIRPEE. [Downloadable!]
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  8. Stéphane Mussard & Patrick Richard, 2008. "Linking Yitzhaki’s and Dagum’s Gini Decompositions," Cahiers de recherche 08-21, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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  9. Miguel Székely, 1997. "Opciones de políticas para la paliación de la pobreza," RES Working Papers 4063, Inter-American Development Bank, Research Department. [Downloadable!]
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