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Tracing the Divide: Intergroup Disparity across Countries

Author

Listed:
  • William Darity, Jr.

    () (Department of Economics, University of North Carolina
    Duke University)

  • Ashwini Deshpande

    (Delhi School of Economics
    Carolina Population Center)

Abstract

Theil's T index has attractive decompositional properties exploited by James Galbraith and his team. We provide a different take on using the Theil index. We consider Theil's T from the perspective of variations in income or earnings across the major racial and ethnic groups that comprise a given society. We presume that the identity of the groups is understood within the norms and conventions of that society. We argue that the interaction between overall inequality and intergroup disparity is complex and not unidirectional. A reverse causation can imply that intergroup disparity is a key element in determining overall inequality.

Suggested Citation

  • William Darity, Jr. & Ashwini Deshpande, 2000. "Tracing the Divide: Intergroup Disparity across Countries," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 75-85, Winter.
  • Handle: RePEc:eej:eeconj:v:26:y:2000:i:1:p:75-85
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume26/V26N1P75_85.pdf
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    References listed on IDEAS

    as
    1. Steve J. Davis & John Haltiwanger, 1991. "Wage Dispersion Between and Within U.S. Manufacturing Plants, 1963-1986," NBER Working Papers 3722, National Bureau of Economic Research, Inc.
    2. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Erik Monsen & Prashanth Mahagaonkar & Christian Dienes, 2012. "Entrepreneurship in India: the question of occupational transition," Small Business Economics, Springer, vol. 39(2), pages 359-382, September.
    2. Siwan Anderson, 2007. "Dowry and Property Rights," Working Papers id:1104, eSocialSciences.
    3. Ashwini Deshpande, 2000. "Does Caste Still Define Disparity? A Look at Inequality in Kerala, India," American Economic Review, American Economic Association, vol. 90(2), pages 322-325, May.
    4. William Darity, 2005. "Stratification economics: The role of intergroup inequality," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 29(2), pages 144-153, June.
    5. Siwan Anderson, 2003. "Why Dowry Payments Declined with Modernization in Europe but Are Rising in India," Journal of Political Economy, University of Chicago Press, vol. 111(2), pages 269-310, April.
    6. Jasso, Guillermina & Kotz, Samuel, 2007. "Two Types of Inequality: Inequality Between Persons and Inequality Between Subgroups," IZA Discussion Papers 2749, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Income; Inequality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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