IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/2075.html
   My bibliography  Save this paper

Between group inequality and targeted transfers

Author

Listed:
  • Wodon, Quentin T.

Abstract

The author provides two extensions to Yitzhaki and Lerman's group decomposition of the Gini index. First, he analyzes stratification (within the group) and inequality (between groups) along several dimensions at once. This makes the determinants of inequality more understandable. Second, he derives the impact on the Gini of marginal changes in income or consumption by group. This can be used to evaluate targeted redistributive policies or to assess the impact of exogenous shocks by group. He applies the analysis to data from Bangladesh, with a focus on how inequality affects land ownership, education, and occupation. Education appears to be a stronger determinant of inequality than occupation, with land ownership ranking third. Marginal targeted transfers and taxes have more effect on redistribution when applied to education (from the well-educated to the illiterate) or occupation groups (from officials and managers to tenants and agricultural workers).

Suggested Citation

  • Wodon, Quentin T., 1999. "Between group inequality and targeted transfers," Policy Research Working Paper Series 2075, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2075
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1999/04/20/000094946_9903250559044/Rendered/PDF/multi_page.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert I. Lerman & Shlomo Yitzhaki, 1994. "Effect of Marginal Changes in Income Sources On U.S. Income Inequality," Public Finance Review, , vol. 22(4), pages 403-417, October.
    2. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September.
    3. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Quentin Wodon, 2000. "Microdeterminants of consumption, poverty, growth, and inequality in Bangladesh," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1337-1352.
    2. Shirantha Heenkenda & D.P.S Chandrakumara, 2015. "A Canonical Analysis on the Relationship between Financial Risk Tolerance and Household Education Investment in Sri Lanka," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 1(4), pages 7-23, October.
    3. Rafael Salas, 2002. "Multilevel interterritorial convergence and additive multidimensional inequality decomposition," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 207-218.
    4. Stéphane Mussard & Pi Alperin María Noel & Françoise Seyte & Michel Terraza, 2005. "Extensions Of Dagum’S Gini Decomposition," Cahiers de recherche 05-07, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    5. Kwang Soo Cheong, 1999. "Economic Crisis and Income Inequality in Korea," Working Papers 199906, University of Hawaii at Manoa, Department of Economics.
    6. Eva Sierminska & Thesia Garner, 2002. "A Comparison of Income, Expenditures, and Home Market Value Distributions using Luxembourg Income Study Data from the 1990s," LIS Working papers 338, LIS Cross-National Data Center in Luxembourg.
    7. Kazuhiko Kakamu & Mototsugu Fukushige, 2009. "Multilevel Decomposition Methods For Income Inequality Measures," The Japanese Economic Review, Japanese Economic Association, vol. 60(3), pages 333-344.
    8. Paolo Radaelli, 2010. "On the Decomposition by Subgroups of the Gini Index and Zenga's Uniformity and Inequality Indexes," International Statistical Review, International Statistical Institute, vol. 78(1), pages 81-101, April.
    9. Michele Giammatteo, 2007. "The bidimensional decomposition of inequality: A nested Theil approach," LIS Working papers 466, LIS Cross-National Data Center in Luxembourg.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2075. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.