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Decomposition of Gini coefficients by class: a new approach

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  • Shujie Yao
  • Jirui Liu

Abstract

When Gini coefficients are decomposed by class (e.g. occupation, sex, region, and so on, it is possible to examine how income inequality can be measured by its class components: intra-class, inter-class and overlapped. In the literature, there have been many studies on the decomposition methodology but most methods are either inflexible or too onerous for empirical analysis. This paper develops a new approach to overcome the shortcomings of existing studies. An example using the most recent Chinese rural income data is provided to demonstrate how this method can be applied to study regional income inequality.

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  • Shujie Yao & Jirui Liu, 1996. "Decomposition of Gini coefficients by class: a new approach," Applied Economics Letters, Taylor & Francis Journals, vol. 3(2), pages 115-119.
    • Handle: RePEc:taf:apeclt:v:3:y:1996:i:2:p:115-119
    DOI: 10.1080/135048596356825
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    References listed on IDEAS

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    1. Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-255, June.
    2. Yao, S. & Liu, J., 1995. "Uneven Development of Non-Farm Entreprises and Regional Income Inequality in Rural China," Papers 50, Portsmouth University - Department of Economics.
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    Cited by:

    1. Zhang, Yingqiang & Eriksson, Tor, 2010. "Inequality of opportunity and income inequality in nine Chinese provinces, 1989-2006," China Economic Review, Elsevier, vol. 21(4), pages 607-616, December.
    2. Shujie Yao, 1997. "Industrialization and spatial income inequality in rural China, 1986‐921," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(1), pages 97-112, May.
    3. Shanti Chakravarty & Jonathan Williams, 2013. "Privatisation of Banks in Mexico and the Tequila Crisis," Working Papers 13012, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    4. Ogwang Tomson, 2014. "A Convenient Method of Decomposing the Gini Index by Population Subgroups," Journal of Official Statistics, Sciendo, vol. 30(1), pages 91-105, March.
    5. Shively, Gerald & Yao, Richard, 2015. "Poverty, Income Inequality, and Irrigation Development: Longitudinal Evidence from Palawan, Philippines," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 12(1), pages 1-18, June.
    6. Thorpe, Andy & Ibarra, Alonso Aguilar & Reid, Chris, 2000. "The New Economic Model and Marine Fisheries Development in Latin America," World Development, Elsevier, vol. 28(9), pages 1689-1702, September.
    7. Jr-Tsung Huang & Chun-Chien Kuo & An-Pang Kao, 2003. "The Inequality of Regional Economic Development in China between 1991 and 2001," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(3), pages 273-285.

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