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The Changing Pattern of Sources of Income and its Impact on Inequality: The Method and its Application to Australia, 1975–94

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  • Nripesh Podder
  • Pundarik Mukhopadhaya

Abstract

This paper proposes a new method of explaining the temporal change in economic inequality in terms of changes in the sources of income. The method is based on the decomposition of the Gini coefficient by source of income. Using this method, the paper also examines changes of the sources of private income in Australia over the last two decades and their impact on the distribution of income. It will be seen that not only have the shares of income from different sources changed, but that there has been significant change in inequality of distribution of the components themselves.

Suggested Citation

  • Nripesh Podder & Pundarik Mukhopadhaya, 2001. "The Changing Pattern of Sources of Income and its Impact on Inequality: The Method and its Application to Australia, 1975–94," The Economic Record, The Economic Society of Australia, vol. 77(238), pages 242-251, September.
    • Handle: RePEc:bla:ecorec:v:77:y:2001:i:238:p:242-251
    DOI: 10.1111/1475-4932.t01-1-00020
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    Cited by:

    1. Michele Giammatteo, 2007. "The bidimensional decomposition of inequality: A nested Theil approach," LIS Working papers 466, LIS Cross-National Data Center in Luxembourg.

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