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Measuring Significance of Inequalities with Heterogeneous Groups and Income Sources

Author

Listed:
  • Stéphane Mussard

    (GREDI, Université de Sherbrooke and GEREM, Université de Perpignan)

  • Pi Alperin María Noel

    (LAMETA, Université Montpellier I)

Abstract

The aim of this paper is threefold. First, we propose a bidimensional decomposition of the Gini ratio that combines two decomposition techniques of inequality measurement in a bivariate distribution context. Usually decomposed measures of inequality are gauged to be significant or not, using non-stratified bootstrap techniques. Second, we show, with an illustrative example on the Italian survey on household’s income and wealth, that the stratified bootstrap yields less distortion in estimated parameters. Finally, a brief review of the well-known confidence intervals follows.

Suggested Citation

  • Stéphane Mussard & Pi Alperin María Noel, 2006. "Measuring Significance of Inequalities with Heterogeneous Groups and Income Sources," Cahiers de recherche 06-13, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:06-13
    as

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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0613.pdf
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    References listed on IDEAS

    as
    1. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-150, March-Apr.
    2. Martin Biewen & Stephen P. Jenkins, 2006. "Variance Estimation for Generalized Entropy and Atkinson Inequality Indices: the Complex Survey Data Case," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(3), pages 371-383, June.
    3. George Athanasopoulos & Farshid Vahid, 2003. "Statistical Inference and Changes in Income Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 412-424, December.
    4. Xu, Kuan, 2000. "Inference for Generalized Gini Indices Using the Iterated-Bootstrap Method," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(2), pages 223-227, April.
    5. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    6. Stephane Mussard, 2004. "The bidimensional decomposition of the Gini ratio. A case study: Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 503-505.
    7. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September.
    8. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
    9. repec:bla:revinw:v:30:y:1984:i:3:p:351-75 is not listed on IDEAS
    10. Frank A. Cowell, 1984. "The Structure Of American Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(3), pages 351-375, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inequalities; Complex surveys; Multi-decomposition; Stratified bootstrap;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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