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Decomposing Lorenz and Concentration Curves

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  • John A. Bishop
  • K. Victor Chow
  • Lester A. Zeager

Abstract

We decompose the Lorenz curve (LC) and its associated concentration curve (CC) by population subgroups. To illustrate these decompositions, we examine changes in earnings inequality among West Germans, East Germans, and foreign guest workers during the recent German unification. We show that East German earnings have become less concentrated in the lower deciles of the overall German earnings distribution, whereas the earnings of West Germans and foreign guest workers have become more concentrated in the lower deciles. Copyright 2003 By The Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.

Suggested Citation

  • John A. Bishop & K. Victor Chow & Lester A. Zeager, 2003. "Decomposing Lorenz and Concentration Curves," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 965-978, August.
    • Handle: RePEc:ier:iecrev:v:44:y:2003:i:3:p:965-978
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    Cited by:

    1. Kelly Maguire & Glenn Sheriff, 2011. "Comparing Distributions of Environmental Outcomes for Regulatory Environmental Justice Analysis," IJERPH, MDPI, vol. 8(5), pages 1-20, May.
    2. Olga Alonso-Villar & Coral Del R�o, 2008. "Geographical Concentration of Unemployment: A Male-Female Comparison in Spain," Regional Studies, Taylor & Francis Journals, vol. 42(3), pages 401-412, April.
    3. Joseph Deutsch & Jacques Silber & Gaston Yalonetzky, 2014. "On Bi-Polarization and The Middle Class in Latin America: A Look At the First Decade of the Twenty-First Century," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 332-352, November.
    4. Coral Río & Olga Alonso-Villar, 2010. "Gender Segregation in the Spanish Labor Market: An Alternative Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 98(2), pages 337-362, September.
    5. Pierre Brochu & Till Gross & Christopher Worswick, 2020. "Temporary foreign workers and firms: Theory and Canadian evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 871-915, August.
    6. Olga Alonso-Villar, 2011. "Measuring concentration: Lorenz curves and their decompositions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 451-475, October.
    7. Coral del Río & Olga Alonso-Villar, 2008. "Occupational and industrial segregation of female and male workers in Spain: An alternative approach," Working Papers 84, ECINEQ, Society for the Study of Economic Inequality.
    8. Olga Alonso Villar & Coral del Río, 2010. "Segregation of female and male workers in Spain: occupations and industries," Hacienda Pública Española / Review of Public Economics, IEF, vol. 194(3), pages 91-121, June.
    9. Olga Alonso-Villar, 2008. "What are we assuming when using inequality measures to quantify geographic concentration? An axiomatic approach," Working Papers 0801, Universidade de Vigo, Departamento de Economía Aplicada.

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