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Measuring Significance of Inequalities with Heterogeneous Groups and Income Sources

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Author Info

  • Stéphane Mussard

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

  • Pi Alperin María Noel

    ()
    (LAMETA, Université Montpellier I)

Abstract

The aim of this paper is threefold. First, we propose a bidimensional decomposition of the Gini ratio that combines two decomposition techniques of inequality measurement in a bivariate distribution context. Usually decomposed measures of inequality are gauged to be significant or not, using non-stratified bootstrap techniques. Second, we show, with an illustrative example on the Italian survey on household’s income and wealth, that the stratified bootstrap yields less distortion in estimated parameters. Finally, a brief review of the well-known confidence intervals follows.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0613.pdf
File Function: First version, 2006
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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 06-13.

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Length: 17 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:shr:wpaper:06-13

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Keywords: Inequalities; Complex surveys; Multi-decomposition; Stratified bootstrap;

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References

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  1. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September.
  2. Jeffrey A. Mills & Sourushe Zandvakili, 1999. "Statistical Inference via Bootstrapping for Measures of Inequality," Macroeconomics 9902003, EconWPA.
  3. Xu, Kuan, 2000. "Inference for Generalized Gini Indices Using the Iterated-Bootstrap Method," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(2), pages 223-27, April.
  4. George Athanasopoulos & Farshid Vahid, 2002. "Statistical Inference on Changes in Income Inequality in Australia," Monash Econometrics and Business Statistics Working Papers 9/02, Monash University, Department of Econometrics and Business Statistics.
  5. Cowell, Frank A, 1984. "The Structure of American Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(3), pages 351-75, September.
  6. Martin Biewen & Stephen P. Jenkins, 2006. "Variance Estimation for Generalized Entropy and Atkinson Inequality Indices: the Complex Survey Data Case," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(3), pages 371-383, 06.
  7. Stephane Mussard, 2004. "The bidimensional decomposition of the Gini ratio. A case study: Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 503-505.
  8. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
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