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Extensions Of Dagum’S Gini Decomposition

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  • Stéphane Mussard

    ()
    (GREDI, Université de Sherbrooke and Université de Perpignan)

  • Pi Alperin María Noel

    ()
    (LAMETA, Université Montpellier I)

  • Françoise Seyte

    ()
    (LAMETA, Université Montpellier I)

  • Michel Terraza

    ()
    (LAMETA, Université Montpellier I)

Abstract

The purpose of this paper is to extend Dagum’s Gini decomposition (“A New Approach to the Decomposition of the Gini Income Inequality Ratio”, Empirical Economics 22(4), 515-531, 1997a) following three types of theoretical modelisation. The first one deals with a “poor/non-poor” decomposition within a sub-group multilevel framework. The second one exhibits the multi-decomposition technique, that is, the combination of the sub-group and the income source decomposition. Finally, we provide a parametric multi-decomposition in order to capture different dimensions of income inequality within groups and between groups.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0505.pdf
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Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 05-07.

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Length: 20 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:shr:wpaper:05-07

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Keywords: Gini; Income Source Decomposition; Multi-decomposition; Poverty; Sub-group Decomposition.;

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References

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  1. Wodon, Quentin T., 1999. "Between group inequality and targeted transfers," Policy Research Working Paper Series 2075, The World Bank.
  2. Stéphane Mussard & Michel Terraza & Françoise Seyte, 2003. "Decomposition of Gini and the generalized entropy inequality measures," Economics Bulletin, AccessEcon, vol. 4(7), pages 1-6.
  3. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
  4. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
  5. Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
  6. Dagum, Camilo, 1980. "Inequality Measures between Income Distributions with Applications," Econometrica, Econometric Society, vol. 48(7), pages 1791-1803, November.
  7. Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January.
  8. Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 47(3), pages 521-31, April.
  9. Joseph Deutsch & Jacques Silber, 2007. "Earnings Functions and the Measurement of the Determinants of Wage Dispersion: Extending Oaxaca’s Approach," Economics Working Paper Archive wp_521, Levy Economics Institute.
  10. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-31.
  11. Dagum, Camilo, 1987. "Measuring the Economic Affluence between Populations of Income Receivers," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 5-12, January.
  12. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  13. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February.
  14. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  15. Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-55, June.
  16. repec:ebl:ecbull:v:4:y:2003:i:7:p:1-6 is not listed on IDEAS
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