Non-Hierarchical Bivariate Decomposition of Theil Indexes
This paper develops a method to conduct non-hierarchical bivariate decomposition of Theil indexes. The method has the merits that, first, it treats all variates symmetrically and therefore facilitates the comparison of inequalities associated with different variates; and, second, it highlights the interaction between variates in the creation of inequality. The method is applied to measure gender and ethnic income inequality in Australia.
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- Adelman, Irma & Levy, Amnon, 1984. "Decomposing Theil's Income of Income Inequality into Between and Within Components: A Note," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(1), pages 119-21, March.
- Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer, vol. 37(1), pages 55-77, 02.
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- Mishra, Padmaja & Parikh, Ashok, 1992. "Household Consumer Expenditure Inequalities in India: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(2), pages 225-36, June.
- Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 47(3), pages 521-31, April.
- Pedro Conceicao & James K. Galbraith, 2000. "Constructing Long and Dense Time-Series of Inequality Using the Theil Index," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 61-74, Winter.
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