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Income stratification and between-group inequality

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  • Allanson, Paul

Abstract

The paper demonstrates that the ratio of the Yitzhaki (1994) to the conventional measure of between-group inequality is in general equal to one minus twice the weighted average probability that a random member of a richer (on average) group is poorer than a random member of a poorer (on average) group, and may therefore be interpreted as an index of stratification in its own right.

Suggested Citation

  • Allanson, Paul, 2013. "Income stratification and between-group inequality," SIRE Discussion Papers 2013-113, Scottish Institute for Research in Economics (SIRE).
    • Handle: RePEc:edn:sirdps:538
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    File URL: http://hdl.handle.net/10943/538
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    References listed on IDEAS

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    1. Peter J. Lambert & Andre' Decoster, 2005. "The Gini coefficient reveals more," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 373-400.
    2. Branko Milanovic & Shlomo Yitzhak, 2006. "Decomposing World Income Distribution: Does The World Have A Middle Class?," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 2(2), pages 88-110.
    3. Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-1227, September.
    4. repec:bla:revinw:v:37:y:1991:i:3:p:313-29 is not listed on IDEAS
    5. Branko Milanovic, 2012. "Global inequality recalculated and updated: the effect of new PPP estimates on global inequality and 2005 estimates," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(1), pages 1-18, March.
    6. Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
    7. Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-255, June.
    8. Yitzhaki, Shlomo, 1994. "Economic distance and overlapping of distributions," Journal of Econometrics, Elsevier, vol. 61(1), pages 147-159, March.
    9. Maria Monti & Alessandro Santoro, 2011. "Stratification And Between‐Group Inequality: A New Interpretation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 412-427, September.
    10. repec:bla:revinw:v:48:y:2002:i:2:p:155-78 is not listed on IDEAS
    11. Shlomo Yitzhaki & Robert I. Lerman, 1991. "Income Stratification And Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-329, September.
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    Citations

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    Cited by:

    1. Luis Ayala & Javier Martín‐Román & Juan Vicente, 2020. "The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 447-477, June.
    2. Allanson, Paul, 2014. "Income stratification and the measurement of interdistributional inequality between multiple groups," SIRE Discussion Papers 2015-34, Scottish Institute for Research in Economics (SIRE).
    3. Allanson, Paul, 2014. "Income stratification and the measurement of interdistributional inequality between multiple groups," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-34, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Paul Allanson, 2018. "On the Measurement of the Overall Degree of Income Stratification between Groups," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 388-405, June.
    5. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2015. "Determinants of public education expenditure: evidence from Indian states," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 6(1), pages 1-19.
    6. Georg Kanitsar, 2022. "The Inequality-Trust Nexus Revisited: At What Level of Aggregation Does Income Inequality Matter for Social Trust?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 171-195, August.

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    More about this item

    Keywords

    Gini coefficient; subgroup decomposability; income stratificationhange;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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