IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v75y1999i2p149-155.html
   My bibliography  Save this article

The Population Sub‐Group Income Effects on Inequality: Analytical Framework and an Empirical Illustration

Author

Listed:
  • SATYA PAUL

Abstract

A method is developed to examine the population sub‐group income effects on inequality using the generalized Theil indices. The proposed method is illustrated by computing the effects of marginal changes in the occupation‐specific incomes on per capita income inequality in Australia based on data for 7197 sample households relating to the 1988‐89 Household Expenditure Survey conducted by the Australian Bureau of Statistics (ABS). The study shows that the growth of (distribution neutral) per capita income in four occupations, namely, unemployed and pensioners, trade‐persons, machine operators and laborers, is inequality reducing whereas the growth of per capita income in all other occupations is inequality augmenting. The occupation‐specific income effects on between‐group inequality are, however, stronger than those on within‐group inequality. These findings are invariant to the choice of alternative distributional weights used in the generalized Theil indices.

Suggested Citation

  • Satya Paul, 1999. "The Population Sub‐Group Income Effects on Inequality: Analytical Framework and an Empirical Illustration," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 149-155, June.
    • Handle: RePEc:bla:ecorec:v:75:y:1999:i:2:p:149-155
    DOI: 10.1111/j.1475-4932.1999.tb02443.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1999.tb02443.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1999.tb02443.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:revinw:v:38:y:1992:i:2:p:225-36 is not listed on IDEAS
    2. Davies, J B & Shorrocks, Anthony F, 1978. "Assessing the Quantitative Importance of Inheritance in the Distribution of Wealth," Oxford Economic Papers, Oxford University Press, vol. 30(1), pages 138-149, March.
    3. Padmaja Mishra & Ashok Parikh, 1992. "Household Consumer Expenditure Inequalities In India: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(2), pages 225-236, June.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    5. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    6. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, Decembrie.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sorger, Gerhard & Stark, Oded, 2013. "Income redistribution going awry: The reversal power of the concern for relative deprivation," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 1-9.
    2. Lorena Remuzgo & Jose Maria Sarabia, 2015. "A general factorial decomposition of the second Theil index of inequality with applications in environmental economics," Economics Bulletin, AccessEcon, vol. 35(2), pages 1369-1378.
    3. Nicole Palan, 2010. "Measurement of Specialization – The Choice of Indices," FIW Working Paper series 062, FIW.
    4. Ruiz-Castillo, Javier, 1994. "A complete model for welfare analysis," UC3M Working papers. Economics 2907, Universidad Carlos III de Madrid. Departamento de Economía.
    5. Brice Magdalou, 2018. "Income inequality measurement: a fresh look at two old issues," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(3), pages 415-435, October.
    6. Ruiz-Castillo, Javier, 1994. "The evolution of the standard of living in Spain, 1973-74 to 1980-81," UC3M Working papers. Economics 2909, Universidad Carlos III de Madrid. Departamento de Economía.
    7. Stéphane Mussard & Françoise Seyte & Michel Terraza, 2006. "La décomposition de l’indicateur de Gini en sous-groupes : une revue de la littérature," Cahiers de recherche 06-11, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    8. Remuzgo, Lorena & Sarabia, José María, 2013. "Desigualdad en la distribución mundial de emisiones de CO2 por sectores: Descomposición y estudio de sensibilidad/Inequality of Global Distribution of CO2 Emissions by Sector: Decomposition and Sensit," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 65-92, Enero.
    9. Bart Capéau & Andre Decoster, 2004. "The Rise or Fall of World Inequality: A Spurious Controversy?," WIDER Working Paper Series DP2004-02, World Institute for Development Economic Research (UNU-WIDER).
    10. Ferreira, Francisco H. G., 2022. "The analysis of inequality in the Bretton Woods institutions," LSE Research Online Documents on Economics 116018, London School of Economics and Political Science, LSE Library.
    11. Antonio Abatemarco, 2010. "Measuring inequality of opportunity through between-group inequality components," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 475-490, December.
    12. Frank A Cowell, 2003. "Theil, Inequality and the Structure of Income Distribution," STICERD - Distributional Analysis Research Programme Papers 67, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    13. Kraay, Aart C. & Lakner, Christoph & Ozler, Berk & Decerf, Benoit Marie A & Jolliffe, Dean Mitchell & Sterck,Olivier & Yonzan, Nishant, 2023. "A New Distribution Sensitive Index for Measuring Welfare, Poverty, and Inequality," Policy Research Working Paper Series 10470, The World Bank.
    14. Satya R. Chakravarty & Palash Sarkar, 2022. "Inequality minimising subsidy and taxation," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(1), pages 53-67, May.
    15. Kakwani, Nanak, "undated". "Income Inequality, Welfare and Poverty in a Developing Economy with Applications to Sri Lanka," WIDER Working Papers 295569, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    16. Nanak Kakwani, 1986. "Income Inequality, Welfare and Poverty in a Developing Economy with Applications to Sri Lanka," WIDER Working Paper Series wp-1986-004, World Institute for Development Economic Research (UNU-WIDER).
    17. Satya R. Chakravarty & Nachiketa Chattopadhyay & Conchita D'Ambrosio, 2016. "On a Family of Achievement and Shortfall Inequality Indices," Health Economics, John Wiley & Sons, Ltd., vol. 25(12), pages 1503-1513, December.
    18. Nicholas Rohde, 2009. "A Symmetric Information-Theoretic Index For The Measurement of Inequality," Discussion Papers Series 398, School of Economics, University of Queensland, Australia.
    19. Sudip Ranjan Basu, 2017. "Do data show divergence? Revisiting global income inequality trends," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 24(1), pages 23-53, June.
    20. Luis José Imedio Olmedo & Elena Bárcena Martín, 2002. "Códigos impositivos, desigualdad y bienestar," Hacienda Pública Española / Review of Public Economics, IEF, vol. 160(1), pages 29-46, march.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:75:y:1999:i:2:p:149-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.