In the framework of inequality measure decompositions, the paper introduces an immediate and straightforward method for the Gini index decomposition, which simplifies the Dagum’s proposal. Simple expressions for the measurement of both overlapping component and inequality between subpopulations are derived, which allow to correctly evaluate and compare the effects of different factors on total inequality. The simplified Dagum’s Gini index decomposition is applied to the Italian household income distribution disaggregated by the educational level and geographical area of residence. The results of the empirical analysis indicate that the inequality between subpopulations represents the main component of the overall inequality.

Transvariation and inequality between subpopulations in the Dagum's Gini index decomposition

COSTA, MICHELE
2009

Abstract

In the framework of inequality measure decompositions, the paper introduces an immediate and straightforward method for the Gini index decomposition, which simplifies the Dagum’s proposal. Simple expressions for the measurement of both overlapping component and inequality between subpopulations are derived, which allow to correctly evaluate and compare the effects of different factors on total inequality. The simplified Dagum’s Gini index decomposition is applied to the Italian household income distribution disaggregated by the educational level and geographical area of residence. The results of the empirical analysis indicate that the inequality between subpopulations represents the main component of the overall inequality.
2009
M. Costa
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/83064
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 8
  • ???jsp.display-item.citation.isi??? ND
social impact