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Note on the Decomposition of Gini Inequality

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  • Sastry, D V S
  • Kelkar, Ujwala R

Abstract

The purpose of this note is to propose a decomposition of the Gini index of inequality into within and between subpopulations using the Lerman-Yitzhaki covariance method. The present method suggests that once the population is arranged in ascending order of income and assigned ranks, the same ranks will be used to calculate total as well as between inequality. In this way, it differs from the one suggested by Jacques Silber (1989) in the measurement of between inequality and, thereby, in the interaction term. Copyright 1994 by MIT Press.

Suggested Citation

  • Sastry, D V S & Kelkar, Ujwala R, 1994. "Note on the Decomposition of Gini Inequality," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 584-586, August.
    • Handle: RePEc:tpr:restat:v:76:y:1994:i:3:p:584-86
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    Cited by:

    1. Branko Milanovic, 2002. "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone," Economic Journal, Royal Economic Society, vol. 112(476), pages 51-92, January.
    2. I. Josa & A. Aguado, 2020. "Measuring Unidimensional Inequality: Practical Framework for the Choice of an Appropriate Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 541-570, June.
    3. Paul Makdissi & Stéphane Mussard, 2008. "Decomposition of s-concentration curves," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1312-1328, November.
    4. Sung Jin Kang & Man Woo Lee, 2001. "Income Distribution and Public Transfers as Social Safety Nets in Korea," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 26(2), pages 61-75, December.
    5. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
    6. Kwang Soo Cheong, 1999. "Economic Crisis and Income Inequality in Korea," Working Papers 199906, University of Hawaii at Manoa, Department of Economics.
    7. St鰨ane Mussard & Patrick Richard, 2012. "Linking Yitzhaki's and Dagum's Gini decompositions," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 2997-3010, August.
    8. Miguel Székely, 1997. "Opciones de políticas para la paliación de la pobreza," Research Department Publications 4063, Inter-American Development Bank, Research Department.
    9. Miguel Székely, 1997. "Policy Options for Poverty Alleviation," Research Department Publications 4062, Inter-American Development Bank, Research Department.
    10. Kwang Soo Cheong, 1999. "A Note on the Interpretation and Application of the Gini Coefficient," Working Papers 199901, University of Hawaii at Manoa, Department of Economics.
    11. Székely, Miguel, 1997. "Policy Options for Poverty Alleviation," IDB Publications (Working Papers) 1277, Inter-American Development Bank.
    12. Geoffrey Warner, 2001. "A lorenz curve based index of income stratification," The Review of Black Political Economy, Springer;National Economic Association, vol. 28(3), pages 41-57, December.
    13. 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.
    14. William Griffiths, 2008. "On Dagum’s Decomposition of the Gini Coefficient," Department of Economics - Working Papers Series 1054, The University of Melbourne.

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