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Non-Hierarchical Bivariate Decomposition of Theil Indexes

Author

Listed:
  • Kam Ki Tang

    (The University of Queensland)

  • Dennis Petrie

    (The University of Dundee)

Abstract

This paper develops a method to conduct non-hierarchical bivariate decomposition of Theil indexes. The method has the merits that, first, it treats all variates symmetrically and therefore facilitates the comparison of inequalities associated with different variates and, second, it highlights the interaction between variates in the creation of inequality. The method is applied to measure gender and ethnic income inequality in Australia.

Suggested Citation

  • Kam Ki Tang & Dennis Petrie, 2009. "Non-Hierarchical Bivariate Decomposition of Theil Indexes," Economics Bulletin, AccessEcon, vol. 29(2), pages 918-927.
    • Handle: RePEc:ebl:ecbull:eb-08d30008
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    References listed on IDEAS

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    1. Cowell, Frank A. & Kuga, Kiyoshi, 1981. "Additivity and the entropy concept: An axiomatic approach to inequality measurement," Journal of Economic Theory, Elsevier, vol. 25(1), pages 131-143, August.
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    4. Mishra, Padmaja & Parikh, Ashok, 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.
    5. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 521-531.
    6. Irma Adelman & Amnon Levy, 1984. "Decomposing Theil'S Income Of Income Inequality Into Between And Within Components: A Note," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(1), pages 119-121, March.
    7. Pedro Conceicao & James K. Galbraith, 2000. "Constructing Long and Dense Time-Series of Inequality Using the Theil Index," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 61-74, Winter.
    8. Adelman, Irma & Levy, Amnon, 1984. "Decomposing Theil's Income of Income Inequality into Between and Within Components: A Note," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(1), pages 119-121, March.
    9. 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.
    10. Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(1), pages 55-77, February.
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    Cited by:

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    2. Takahiro Akita & Sachiko Miyata, 2013. "The roles of location and education in the distribution of economic well-being in Indonesia: hierarchical and non-hierarchical inequality decomposition analyses," Letters in Spatial and Resource Sciences, Springer, vol. 6(3), pages 137-150, November.
    3. Takahiro Akita & Sachiko Miyata, 2018. "Spatial Inequalities in Indonesia, 1996–2010: A Hierarchical Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 829-852, August.
    4. Takahiro Akita, 2017. "Educational Expansion and the Role of Education in Expenditure Inequality in Indonesia Since the 1997 Financial Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1165-1186, February.
    5. Takahiro Akita & Raquel Celeste & Sachiko Miyata, 2023. "Why Has Inequality in the Philippines Declined? A Two-stage Hierarchical Inequality Decomposition Analysis by Location and Education," Working Papers EMS_2023_07, Research Institute, International University of Japan.
    6. Takahiro Akita & Sachiko Miyata, 2020. "Urban and Rural Dimensions of the Role of Education in Inequality: A Comparative Analysis between Indonesia, Myanmar, and the Philippines," Working Papers EMS_2020_04, Research Institute, International University of Japan.
    7. Takahiro Akita & Sachiko Miyata, 2023. "Education and Expenditure Inequality in Indonesia and the Philippines: A Comparative Analysis in an Urban and Rural Dual Framework," Working Papers EMS_2023_03, Research Institute, International University of Japan.

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    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D6 - Microeconomics - - Welfare Economics

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