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On Decomposition of the Gini Index of Equality

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Author Info
Stéphane Mussard () (GREDI, Université de Sherbrooke and Université de Perpignan)

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Abstract

The purpose of this paper is to show that the Gini index of equality is: (i) subgroup decomposable throughout interpersonal comparisons; (ii) decomposable by income source; (iii) decomposable both by subgroup and income source; (iv) and decomposable in a multidimensional context permitting statistical inference on equality components. These results entail that decision makers must use the Gini index of equality decompositions since they imply necessarily the computation of the Gini index of inequality decompositions. The reverse is not true.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0508.pdf
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File Function: First version, 2005
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Publisher 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 05-09.

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Length: 24 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:shr:wpaper:05-09

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Related research
Keywords: Gini index of equality; Multi-decomposition;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Berrebi, Z M & Silber, Jacques G, 1987. "Dispersion, Asymmetry and the Gini Index of Inequality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(2), pages 331-38, June. [Downloadable!] (restricted)
  2. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-31.
  3. 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. [Downloadable!] (restricted)
  4. Kuan Xu & Lars Osberg, 2002. "The social welfare implications, decomposability, and geometry of the Sen family of poverty indices," Canadian Journal of Economics, Canadian Economics Association, vol. 35(1), pages 138-152, February. [Downloadable!] (restricted)
    Other versions:
  5. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November. [Downloadable!] (restricted)
  6. Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-27, September. [Downloadable!] (restricted)
  7. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, Blackwell Publishing, vol. 37(3), pages 313-29, September.
  8. Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-55, June. [Downloadable!] (restricted)
  9. Fei, John C H & Rainis, Gustav & Kuo, Shirley W Y, 1978. "Growth and the Family Distribution of Income by Factor Components," The Quarterly Journal of Economics, MIT Press, vol. 92(1), pages 17-53, February. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
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  11. Silber, Jacques, 1993. "Inequality Decomposition by Income," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 545-47, August. [Downloadable!] (restricted)
  12. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January. [Downloadable!] (restricted)
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