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Between Group Inequality and Targeted Transfers

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  • Wodon, Quentin T

Abstract

This paper provides two extensions to the group decomposition of the Gini index by S. Yitzhaki and R. I. Lerman (1991). First, within group, stratification, and between group inequality are analyzed along several dimensions at once. This provides for a better understanding of the determinants of inequality. Second, the impact on the Gini of marginal changes in income or consumption by group is derived. This can be used to evaluate targeted redistributive policies or assess the impact of exogenous shocks by group. The analysis is applied to data from Bangladesh with a focus on the impact of land ownership, education, and occupation on inequality. Copyright 1999 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Wodon, Quentin T, 1999. "Between Group Inequality and Targeted Transfers," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 21-39, March.
  • Handle: RePEc:bla:revinw:v:45:y:1999:i:1:p:21-39
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    1. Robert I. Lerman & Shlomo Yitzhaki, 1994. "Effect of Marginal Changes in Income Sources On U.S. Income Inequality," Public Finance Review, , vol. 22(4), pages 403-417, October.
    2. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September.
    3. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
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    Cited by:

    1. Quentin Wodon, 2000. "Microdeterminants of consumption, poverty, growth, and inequality in Bangladesh," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1337-1352.
    2. Shirantha Heenkenda & D.P.S Chandrakumara, 2015. "A Canonical Analysis on the Relationship between Financial Risk Tolerance and Household Education Investment in Sri Lanka," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 1(4), pages 7-23, October.
    3. Rafael Salas, 2002. "Multilevel interterritorial convergence and additive multidimensional inequality decomposition," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 207-218.
    4. Stéphane Mussard & Pi Alperin María Noel & Françoise Seyte & Michel Terraza, 2005. "Extensions Of Dagum’S Gini Decomposition," Cahiers de recherche 05-07, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    5. Kwang Soo Cheong, 1999. "Economic Crisis and Income Inequality in Korea," Working Papers 199906, University of Hawaii at Manoa, Department of Economics.
    6. Eva Sierminska & Thesia Garner, 2002. "A Comparison of Income, Expenditures, and Home Market Value Distributions using Luxembourg Income Study Data from the 1990s," LIS Working papers 338, LIS Cross-National Data Center in Luxembourg.
    7. Kazuhiko Kakamu & Mototsugu Fukushige, 2009. "Multilevel Decomposition Methods For Income Inequality Measures," The Japanese Economic Review, Japanese Economic Association, vol. 60(3), pages 333-344.
    8. Paolo Radaelli, 2010. "On the Decomposition by Subgroups of the Gini Index and Zenga's Uniformity and Inequality Indexes," International Statistical Review, International Statistical Institute, vol. 78(1), pages 81-101, April.
    9. 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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