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Pair-Based Decomposable Inequality Measures

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  • Stéphane Mussard

Abstract

Four axioms are introduced in order to characterize the family of pair-based decomposable inequality measures, which is embraced in the class of weakly decomposable inequality measures. Three axioms, namely, normalization by pairs, aggregation by pairs, and decomposition by pairs enable the pair-based family of inequality measures to be deduced and to be decomposed into within- and between-group components. The weights of population shares that bring out those within- and between-group estimators have the particularity to be unique and to sum to unity. By invoking the fourth axiom of symmetry by pairs, it is proved that pair-based inequality measures and their two decomposed components are U-statistics, so that, statistical information may be inferred.

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File URL: http://www.lameta.univ-montp1.fr/Documents/DR2010-15.pdf
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Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 10-15.

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Length: 14 pages
Date of creation: Nov 2010
Date of revision: Nov 2010
Handle: RePEc:lam:wpaper:10-15

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  1. Antonio Abatemarco, 2010. "Measuring inequality of opportunity through between-group inequality components," Journal of Economic Inequality, Springer, vol. 8(4), pages 475-490, December.
  2. Silber, Jacques, 1993. "Inequality Decomposition by Income," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 545-47, August.
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