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A note on the Dagum decomposition of the Gini inequality index

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  • Maria Giovanna MONTI

Abstract

In this paper we reconsider the Dagum decomposition of the Gini index and we compare this decomposition with the decompositions proposed by Mookherjee and Shorrocks and by Lambert and Aronson. In so doing, a deeper insight into the meaning of the overlapping term is given and an alternative expression for this term is obtained. The results are applied to a sub-sample of the Polish CSO survey: the families taken into consideration are selected and grouped according to the number of their components. The aim is to analyze how the present Polish personal income tax modifies the overall income distribution and to evaluate the changes in the within and between groups income inequalities

Suggested Citation

  • Maria Giovanna MONTI, 2007. "A note on the Dagum decomposition of the Gini inequality index," Departmental Working Papers 2007-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2007-16
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    File URL: http://wp.demm.unimi.it/files/wp/2007/DEMM-2007_016wp.pdf
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    References listed on IDEAS

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    1. Udo Ebert, 1999. "Dual Decomposable Inequality Measures," Canadian Journal of Economics, Canadian Economics Association, vol. 32(1), pages 234-246, February.
    2. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 521-531.
    3. 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.
    4. Dagum, Camilo, 1980. "Inequality Measures between Income Distributions with Applications," Econometrica, Econometric Society, vol. 48(7), pages 1791-1803, November.
    5. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    6. Charles Blackorby & David Donaldson & Maria Auersperg, 1981. "A New Procedure for the Measurement of Inequality within and among Population Subgroups," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 665-685, November.
    7. Giovanni Maria Giorgi, 2005. "A fresh look at the topical interest of the Gini concentration ratio," Econometrics 0511005, University Library of Munich, Germany.
    8. Giovanni Maria Giorgi, 2005. "Bibliographic portrait of the Gini concentration ratio," Econometrics 0511004, University Library of Munich, Germany.
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    Cited by:

    1. Achille VERNIZZI, 2009. "Playing with the Hadamard product in decomposing Gini, concentration, redistribution and re-ranking indexes," Departmental Working Papers 2009-50, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Alina Jędrzejczak, 2014. "Income Inequality and Income Stratification in Poland," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 15(2), pages 269-282, March.
    3. Fei Ma & Xiaodan Li & Qipeng Sun & Fei Liu & Wenlin Wang & Libiao Bai, 2018. "Regional Differences and Spatial Aggregation of Sustainable Transport Efficiency: A Case Study of China," Sustainability, MDPI, vol. 10(7), pages 1-23, July.
    4. Mauro Mussini, 2013. "A matrix approach to the Gini index decomposition by subgroup and by income source," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2457-2468, June.

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    More about this item

    Keywords

    Gini coefficient; inequality decomposition; Gini residual;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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