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Decomposition of Mehran and Piesch inequality measures by factor components and their application to the distribution of per capita household income in Brazil

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  • Hoffmann, Rodolfo

Abstract

Inequality decomposition by factor components is extended to the Mehran and Piesch indices, comparing them with the decomposition of the Gini index, the squared coefficient of variation and the Theil's T coefficient. The decomposition procedure is applied to the distribution of per capita household income in Brazil in 1999, considering six components: earnings of civil servants and military personnel, earnings of other employees, earnings of self-employed workers, earnings of employers, pensions and, finally, all other incomes. One of the results is that for all the five measures used, the concentration ratio of pensions is higher than the overall index of inequality, indicating that this component is contributing to the increase in income inequality.

Suggested Citation

  • Hoffmann, Rodolfo, 2004. "Decomposition of Mehran and Piesch inequality measures by factor components and their application to the distribution of per capita household income in Brazil," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 24(1), May.
    • Handle: RePEc:sbe:breart:v:24:y:2004:i:1:a:2706
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    1. Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(3), pages 451-473.
    2. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
    3. Anthony F. Shorrocks, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(2), pages 311-326.
    4. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-628, October.
    5. Hoffmann, Rodolfo, 2003. "Inequality in Brazil: The Contribution of Pensions," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(4), October.
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    1. Raul da Mota Silveira-Neto & Carlos Roberto Azzoni, 2012. "Social Programs, Industrial Deconcentration and the Recent Decrease in Regional Income Inequality in Brazil," Chapters, in: Werner Baer (ed.), The Regional Impact of National Policies, chapter 4, Edward Elgar Publishing.
    2. Rodolfo Hoffmann, 2011. "The Evolution of Income Distribution in Brazil," Chapters, in: Werner Baer & David Fleischer (ed.), The Economies of Argentina and Brazil, chapter 11, Edward Elgar Publishing.
    3. Raul Silveira Neto & Carlos Azzoni, 2011. "Non-Spatial Government Policies and Regional Income Inequality in Brazil," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 453-461.
    4. Raul da Mota Silveira Neto F. & Michela Barreto Camboim Gonçalves, 2007. "Regional Per Capita Income Inequality Reduction In Brazil From 1995 To 2005: Labor Productivity Convergence Or Public Income Transferences?," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 158, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Luis F. Lopez-Calva & Sonia Rocha, 2012. "Exiting Belindia? Lesson from the Recent Decline in Income Inequality in Brazil," World Bank Publications - Reports 12808, The World Bank Group.

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