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Decomposition of inequality change into pro-poor growth and mobility components: -dsginideco-

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  • Stephen P. Jenkins

    ()
    (University of Essex)

  • Philippe Van Kerm

    ()
    (CEPS/INSTEAD, Luxembourg)

Abstract

This short talk describes the module -dsginideco- which decomposes the change in income inequality between two time periods into two components, one representing the progressivity (pro-poorness) of income growth, and the other representing reranking. Inequality is measured using the generalized Gini coefficient, also known as the S-Gini, G(v). This is a distributionally-sensitive inequality index, with larger values of v placing greater weight on inequality differences among poorer (lower ranked) observations. The conventional Gini coefficient corresponds to thecase v = 2. The decomposition is of the form: final-period inequality - initial-period inequality = R - P where R is a measure of reranking, and P is a measure of the progressivity of income growth. For full details of the decomposition and an application, see S.P. Jenkins and P. Van Kerm (2006), "Trends in income inequality, pro-poor income growth and income mobility", Oxford Economic Papers, 58(3): 531-548.

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Bibliographic Info

Paper provided by Stata Users Group in its series United Kingdom Stata Users' Group Meetings 2009 with number 11.

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Date of creation: 16 Sep 2009
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Handle: RePEc:boc:usug09:11

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Web page: http://www.stata.com/meeting/uk09
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Cited by:
  1. Paul Gregg & Rosanna Scutella & Claudia Vittori, 2012. "Earnings Mobility and Inequality: An Integrated Framework," Melbourne Institute Working Paper Series wp2012n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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