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INEQOP: Stata module to perform Inequality of Opportunity analysis using the Shapley approach with Gini and entropy measures

Author

Listed:
  • Carlos Gradin

    (Universidade de Vigo)

Programming Language

Abstract

ineqop estimates the contribution of birth circumstances and other factors to various inequality measures using the direct, indirect, and Shapley approaches, following Gradín and Zapata-Román (ROIW, 2026). Given an outcome variable (e.g., per capita income) and a set of circumstance variables that define types (e.g., sex, ethnicity, et.), the command computes direct, indirect, and Shapley decompositions of inequality for the Gini coefficient and the generalized entropy (GE) family. The Shapley approach accounts for the fact that direct and indirect estimates do not sum to the overall inequality under path-dependent measures because of interaction effects. The command provides several optional outputs. Observations with missing values are detected and excluded, and GE indices that require strictly positive values are automatically dropped when the outcome contains zeros or negative values.

Suggested Citation

  • Carlos Gradin, 2026. "INEQOP: Stata module to perform Inequality of Opportunity analysis using the Shapley approach with Gini and entropy measures," Statistical Software Components S459643, Boston College Department of Economics.
    • Handle: RePEc:boc:bocode:s459643
    Note: This module should be installed from within Stata by typing "ssc install ineqop". 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/ineqop.ado
    File Function: program code
    Download Restriction: no
    File URL: http://fmwww.bc.edu/repec/bocode/i/ineqop.sthlp
    File Function: help file
    Download Restriction: no
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