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Stratification and between-group inequality: a new approach to measurement

Author

Listed:
  • Monti, maria
  • Santoro, alessandro

Abstract

Traditionally, the literature has seen stratification as linked closely to within-group inequality. More recently, some papers have focused on measuring the impact of stratification on betweengroup inequality. In this paper, we show that when two groups are involved, such an impact can be measured by a simple comparison of the two cumulative distribution functions. This approach allows an interpretation of stratification in terms of probabilities and paves the way for a neat and simple graphical illustration. We apply it to the analysis of between-continent inequality.

Suggested Citation

  • Monti, maria & Santoro, alessandro, 2010. "Stratification and between-group inequality: a new approach to measurement," MPRA Paper 29361, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:29361
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    File URL: https://mpra.ub.uni-muenchen.de/29361/1/MPRA_paper_29361.pdf
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    References listed on IDEAS

    as
    1. Peter J. Lambert & Andre' Decoster, 2005. "The Gini coefficient reveals more," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 373-400.
    2. Milanovic, Branko & Yitzhaki, Shlomo, 2002. "Decomposing World Income Distribution: Does the World Have a Middle Class?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(2), pages 155-178, June.
    3. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-329, September.
    4. Yitzhaki, Shlomo, 1994. "Economic distance and overlapping of distributions," Journal of Econometrics, Elsevier, vol. 61(1), pages 147-159, March.
    5. Maria Giovanna MONTI & Alessandro SANTORO, 2009. "The Gini decomposition: an alternative formulation with an application to tax reform," Departmental Working Papers 2009-30, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    between-group inequality; Gini index decomposition; stratification; transvariations.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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