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Extensions Of Dagum’S Gini Decomposition

Author

Listed:
  • Stéphane Mussard

    (GREDI, Université de Sherbrooke and Université de Perpignan)

  • Pi Alperin María Noel

    (LAMETA, Université Montpellier I)

  • Françoise Seyte

    (LAMETA, Université Montpellier I)

  • Michel Terraza

    (LAMETA, Université Montpellier I)

Abstract

The purpose of this paper is to extend Dagum’s Gini decomposition (“A New Approach to the Decomposition of the Gini Income Inequality Ratio”, Empirical Economics 22(4), 515-531, 1997a) following three types of theoretical modelisation. The first one deals with a “poor/non-poor” decomposition within a sub-group multilevel framework. The second one exhibits the multi-decomposition technique, that is, the combination of the sub-group and the income source decomposition. Finally, we provide a parametric multi-decomposition in order to capture different dimensions of income inequality within groups and between groups.

Suggested Citation

  • Stéphane Mussard & Pi Alperin María Noel & Françoise Seyte & Michel Terraza, 2005. "Extensions Of Dagum’S Gini Decomposition," Cahiers de recherche 05-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:05-07
    as

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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0505.pdf
    File Function: First version, 2005
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    References listed on IDEAS

    as
    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    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. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    5. Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January.
    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. Stéphane Mussard & Michel Terraza & Françoise Seyte, 2003. "Decomposition of Gini and the generalized entropy inequality measures," Economics Bulletin, AccessEcon, vol. 4(7), pages 1-6.
    9. Dagum, Camilo, 1980. "Inequality Measures between Income Distributions with Applications," Econometrica, Econometric Society, vol. 48(7), pages 1791-1803, November.
    10. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
    11. Quentin T. Wodon, 1999. "Between Group Inequality And Targeted Transfers," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 21-39, March.
    12. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    13. Jacques Silber & Joseph Deutsch, 2007. "Earnings Functions and the Measurement of the Determinants of Wage Dispersion: Extending Oaxaca's Approach," Working Papers 2007-19, FEDEA.
    14. repec:ebl:ecbull:v:4:y:2003:i:3:p:1-5 is not listed on IDEAS
    15. repec:ebl:ecbull:v:4:y:2003:i:7:p:1-6 is not listed on IDEAS
    16. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-115, February.
    17. Dagum, Camilo, 1987. "Measuring the Economic Affluence between Populations of Income Receivers," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 5-12, January.
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    Cited by:

    1. Mornet, Pauline & Zoli, Claudio & Mussard, Stéphane & Sadefo-Kamdem, Jules & Seyte, Françoise & Terraza, Michel, 2013. "The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005," Economic Modelling, Elsevier, vol. 35(C), pages 944-963.
    2. Emanuela Raffinetti & Elena Siletti & Achille Vernizzi, 2017. "Analyzing the Effects of Negative and Non-negative Values on Income Inequality: Evidence from the Survey of Household Income and Wealth of the Bank of Italy (2012)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 185-207, August.
    3. Huber, Hans, 2009. "Spatial structure and network behaviour of strategic airline groups: A comparison between Europe and the United States," Transport Policy, Elsevier, vol. 16(4), pages 151-162, August.
    4. Paolo Radaelli, 2010. "On the Decomposition by Subgroups of the Gini Index and Zenga's Uniformity and Inequality Indexes," International Statistical Review, International Statistical Institute, vol. 78(1), pages 81-101, April.

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    More about this item

    Keywords

    Gini; Income Source Decomposition; Multi-decomposition; Poverty; Sub-group Decomposition.;
    All these keywords.

    JEL classification:

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

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