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Statistical analysis of inequality with decompositions: the Canadian experience

Author

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  • David Gray
  • Jeffrey A. Mills
  • Sourushe Zandvakili

Abstract

This study carries out a decomposition of Theil-entropy measures into a between-group component, based on factors such as education, age, gender, and marital status, and a component representing inequality within each group. We apply a bootstrapping technique to measures of inequality to enable statistical inference. Trends in household income inequality in Canada are investigated using data from 1991 to 1997 drawn from Survey of Consumer Finance. We find an evident trend toward increasing inequality of household incomes between the years 1991–1997, during which the economy was recovering from a steep recession. Although most of the increase in measured inequality is attributed to the `within-group' component, we find the change in `between-group' inequality to be significant for education, age, and marital status. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • David Gray & Jeffrey A. Mills & Sourushe Zandvakili, 2003. "Statistical analysis of inequality with decompositions: the Canadian experience," Empirical Economics, Springer, vol. 28(2), pages 291-302, April.
    • Handle: RePEc:spr:empeco:v:28:y:2003:i:2:p:291-302
    DOI: 10.1007/s001810200131
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    Citations

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    Cited by:

    1. Judith Clarke & Nilanjana Roy, 2012. "On statistical inference for inequality measures calculated from complex survey data," Empirical Economics, Springer, vol. 43(2), pages 499-524, October.
    2. Takahiro Akita & Sachiko Miyata, 2008. "Urbanization, educational expansion, and expenditure inequality in Indonesia in 1996, 1999, and 2002," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(2), pages 147-167.
    3. Mohsen Ayyash & Siok Kun Sek, 2020. "Decomposing Inequality in Household Consumption Expenditure in Malaysia," Economies, MDPI, vol. 8(4), pages 1-15, October.
    4. Jeffrey Mills & Sourushe Zandvakili, 2004. "Analysis of gender-based family income inequality in Canada," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 469-472.
    5. Takahiro Akita & Sachiko Miyata, 2020. "Urban and Rural Dimensions of the Role of Education in Inequality: A Comparative Analysis between Indonesia, Myanmar, and the Philippines," Working Papers EMS_2020_04, Research Institute, International University of Japan.
    6. Takahiro Akita & Sachiko Miyata, 2023. "Education and Expenditure Inequality in Indonesia and the Philippines: A Comparative Analysis in an Urban and Rural Dual Framework," Working Papers EMS_2023_03, Research Institute, International University of Japan.
    7. Takahiro Akita, 2024. "The Roles of Location and Education in Income Inequality: An Analytical Framework," Working Papers EMS_2024_06, Research Institute, International University of Japan.

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