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I_INEQ: Stata module to provide individual decomposition of inequality measures

Author

Listed:
  • Tim Liao

    (University of Illinois)

Programming Language

Abstract

i_ineq computes individual components of three inequality measures (Gini index, Theil's L, and Theil's T) and their group-based decompositions. The function takes as input an outcome variable (such as income), a grouping variable, and an optional sampling weight. It returns three new variables containing individual contributions and their between-group and within-group components. The Gini index (or Gini coefficient) is a widely used measure of inequality that ranges from 0 (perfect equality) to 1 (maximum inequality). Theil's L (also known as Theil's second measure or mean log deviation) and Theil's T (also known as Theil's first measure or Theil entropy index) are members of the generalized entropy family of inequality measures. This command implements the individual decomposition methods described in Liao (Sociological Methods & Research, 2022), which allow researchers to examine the contribution of each individual to overall inequality and to decompose these contributions into between-group and within-group components.

Suggested Citation

  • Tim Liao, 2025. "I_INEQ: Stata module to provide individual decomposition of inequality measures," Statistical Software Components S459540, Boston College Department of Economics.
    • Handle: RePEc:boc:bocode:s459540
    Note: This module should be installed from within Stata by typing "ssc install i_ineq". The module is made available under terms of the GPL v3 (https://www.gnu.org/licenses/gpl-3.0.txt). Windows users should not attempt to download these files with a web browser.
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    File URL: http://fmwww.bc.edu/repec/bocode/i/i_ineq.ado
    File Function: program code
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    File URL: http://fmwww.bc.edu/repec/bocode/i/i_ineq.sthlp
    File Function: help file
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