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A Note on Between-Group Inequality with an Application to Households

Author

Listed:
  • Maria Monti

    (Università degli studi di Milano)

  • Alessandro Santoro

    (Università degli studi di Milano-Bicocca)

Abstract

This Note belongs to the recent literature emphasizing that the residual in the traditional Gini index decomposition reveals more than what is commonly believed. We show that the residual reveals the so far unexplored contribution of stratification to between-group inequality, and this suggests that the between-group inequality measure should be modified accordingly. We propose a measure of between-group inequality which is a function of stratification. This is our first result. Moreover, we show that this measure is numerically equivalent to the one suggested by Yitzhaki and Lerman (1991), yet, contrary to the latter, we are able to define precisely its range of variation. This is our second result. Both results are illustrated by analysing between-group inequality and stratification among Italian households.

Suggested Citation

  • Maria Monti & Alessandro Santoro, 2009. "A Note on Between-Group Inequality with an Application to Households," Journal of Income Distribution, Ad libros publications inc., vol. 18(3-4), pages 49-62, September.
    • Handle: RePEc:jid:journl:y:2009:v:18:i:3-4:p:49-62
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    Citations

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    Cited by:

    1. Diana Bílková, 2015. "Financial Position of Czech Employees at the Beginning of the 3rd Millennium according to Educational Attainment," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(3), pages 307-331.
    2. Diana Bílková, 2015. "What is About Wages in the Czech Education and Healthcare Sectors Before, during and after the Global Economic Recession?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(1), pages 58-72, January.
    3. Mauro Mussini, 2010. "On the Link between Silber and Dagum Decomposition of the Gini Index," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 11(3), pages 597-614, December.
    4. Aviad Tur-Sinai, 2019. "Is a Municipal Boundary a Good Stratification Variable?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(3), pages 1075-1098, August.

    More about this item

    Keywords

    between-group inequality; Gini index decomposition; stratification; transvariations;
    All these keywords.

    JEL classification:

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

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