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The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005

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  • Mornet, Pauline
  • Zoli, Claudio
  • Mussard, Stéphane
  • Sadefo-Kamdem, Jules
  • Seyte, Françoise
  • Terraza, Michel

Abstract

We propose a generalization of the decomposition by population subgroups of the α-Gini index, the so-called multi-level subgroup decomposition. We demonstrate that all components obtained from the decomposition, can integrate in their functional form a parameter of inequality sensitivity being either related to overall inequalities (α) or to between-group non-overlappings (β). We prove that a decision maker who behaves in accordance with the α-Gini indices is sensitive to the inequalities between the groups when this sensitivity may differ for each partition of groups. For that purpose, we check the axiomatic foundations of this new family of measures providing also a characterization for the α-Gini indices where α>2. An illustration of the multi-level α-Gini decomposition is performed for the analysis of the income disparities in France in 2005.

Suggested Citation

  • Mornet, Pauline & Zoli, Claudio & Mussard, Stéphane & Sadefo-Kamdem, Jules & Seyte, Françoise & Terraza, Michel, 2013. "The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005," Economic Modelling, Elsevier, vol. 35(C), pages 944-963.
  • Handle: RePEc:eee:ecmode:v:35:y:2013:i:c:p:944-963
    DOI: 10.1016/j.econmod.2013.06.016
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    References listed on IDEAS

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    Cited by:

    1. Sun, Chuanwang & Zhang, Yifan & Peng, Shuijun & Zhang, Wencheng, 2015. "The inequalities of public utility products in China: From the perspective of the Atkinson index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 751-760.
    2. Pauline Mornet, 2013. "A program for weakly decomposable inequality measures by population subgroups," Economics Bulletin, AccessEcon, vol. 33(3), pages 1738-1750.
    3. Makdissi, Paul & Sylla, Daouda & Yazbeck, Myra, 2013. "Decomposing health achievement and socioeconomic health inequalities in presence of multiple categorical information," Economic Modelling, Elsevier, vol. 35(C), pages 964-968.

    More about this item

    Keywords

    Inequality aversion; α-Gini; Multi-level decomposition; Subgroup decomposition;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D69 - Microeconomics - - Welfare Economics - - - Other

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