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On the interpretation (and misinterpretation) of inequality decompositions by income sources

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  • Kimhi, Ayal

Abstract

This paper discusses interpretations of different inequality decomposition rules when inequality is decomposed by income sources. It argues that authors of a recent article based their conclusions on misinterpreted decomposition results. It also argues that marginal effects, derived as elasticities of inequality with respect to uniform increases in income from each source, are easily interpreted and can be compared across different decomposition rules.

Suggested Citation

  • Kimhi, Ayal, 2009. "On the interpretation (and misinterpretation) of inequality decompositions by income sources," Discussion Papers 290007, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:290007
    DOI: 10.22004/ag.econ.290007
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