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New measures of fair and unfair inequality: A Gini decomposition-based approach

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  • Nair, Mansi
  • Sarkar, Sandip

Abstract

The paper introduces a new decomposition of the Gini coefficient, emphasizing the income disparities that emerge due to better circumstantial situations and higher efforts. We illustrate our methodology with Indian data, highlighting the advantages of using our method compared to the existing ones.

Suggested Citation

  • Nair, Mansi & Sarkar, Sandip, 2025. "New measures of fair and unfair inequality: A Gini decomposition-based approach," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s016517652500415x
    DOI: 10.1016/j.econlet.2025.112578
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    References listed on IDEAS

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    1. Sarkar, Sandip, 2023. "Gini decomposition: An inequality of opportunity perspective," Economics Letters, Elsevier, vol. 223(C).
    2. Paolo Brunori & Paul Hufe & Daniel Mahler, 2023. "The roots of inequality: estimating inequality of opportunity from regression trees and forests," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(4), pages 900-932, October.
    3. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 429-450, December.
    4. Francisco H.G. Ferreira & Jérémie Gignoux, 2011. "The Measurement of Inequality of Inequality of Opportunity: Theory and an Application to Latin America," Post-Print halshs-00754503, HAL.
    5. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2022. "Inheritances and wealth inequality: a machine learning approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 27-51, March.
    6. Domenico Moramarco, 2023. "Fairness and Gini decomposition," Working Papers 650, ECINEQ, Society for the Study of Economic Inequality.
    7. Brunori, Paolo & Hufe, Paul & Mahler, Daniel, 2023. "The roots of inequality: estimating inequality of opportunity from regression trees and forests," LSE Research Online Documents on Economics 118220, London School of Economics and Political Science, LSE Library.
    8. Marc Fleurbaey & Vito Peragine, 2013. "Ex Ante Versus Ex Post Equality of Opportunity," Economica, London School of Economics and Political Science, vol. 80(317), pages 118-130, January.
    9. Francisco H. G. Ferreira & Jérémie Gignoux, 2011. "The Measurement Of Inequality Of Opportunity: Theory And An Application To Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 622-657, December.
    10. Moramarco, Domenico, 2023. "Fairness and Gini decomposition," Economics Letters, Elsevier, vol. 233(C).
    Full references (including those not matched with items on IDEAS)

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