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Stratification and between-group inequality: a new approach to measurement

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  • Monti, maria
  • Santoro, alessandro

Abstract

Traditionally, the literature has seen stratification as linked closely to within-group inequality. More recently, some papers have focused on measuring the impact of stratification on betweengroup inequality. In this paper, we show that when two groups are involved, such an impact can be measured by a simple comparison of the two cumulative distribution functions. This approach allows an interpretation of stratification in terms of probabilities and paves the way for a neat and simple graphical illustration. We apply it to the analysis of between-continent inequality.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29361.

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Date of creation: Jan 2010
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Handle: RePEc:pra:mprapa:29361

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Keywords: between-group inequality; Gini index decomposition; stratification; transvariations.;

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  1. Peter J. Lambert & André Decoster, 2005. "The Gini Coefficient Reveals More," Center for Economic Studies - Discussion papers, Katholieke Universiteit Leuven, Centrum voor Economische Studiën ces0508, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  2. Maria Giovanna MONTI & Alessandro SANTORO, 2009. "The Gini decomposition: an alternative formulation with an application to tax reform," Departmental Working Papers, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano 2009-30, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  3. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-29, September.
  4. Yitzhaki, Shlomo, 1994. "Economic distance and overlapping of distributions," Journal of Econometrics, Elsevier, Elsevier, vol. 61(1), pages 147-159, March.
  5. Milanovic, Branko & Yitzhaki, Shlomo, 2002. "Decomposing World Income Distribution: Does the World Have a Middle Class?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(2), pages 155-78, June.
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