IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/6763.html
   My bibliography  Save this paper

Individual diversity and the Gini decomposition

Author

Listed:
  • Ceriani, Lidia
  • Verme, Paolo

Abstract

The paper defines the Gini index as the sum of individual contributions where individual contributions are interpreted as the degree of diversity of each individual from all other members of society. Among various possible forms of individual contributions to the Gini found in the literature, the paper shows that only one form satisfies a set of desirable properties. This form can be used for decomposing the Gini into population subgroups. An empirical illustration shows the use of this approach.

Suggested Citation

  • Ceriani, Lidia & Verme, Paolo, 2014. "Individual diversity and the Gini decomposition," Policy Research Working Paper Series 6763, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6763
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/01/30/000158349_20140130144025/Rendered/PDF/WPS6763.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Lidia Ceriani & Paolo Verme, 2012. "The origins of the Gini index: extracts from Variabilità e Mutabilità (1912) by Corrado Gini," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 421-443, September.
    3. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    4. 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.
    5. Frank Cowell & Udo Ebert, 2004. "Complaints and inequality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 23(1), pages 71-89, August.
    6. 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.
    7. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(2), pages 321-324.
    8. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    9. Anthony Shorrocks, 2013. "Decomposition procedures for distributional analysis: a unified framework based on the Shapley value," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 99-126, March.
    10. Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-255, June.
    11. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Piotr Dniestrzański & Janusz Łyko, 2015. "The Disproportion Of Allocation Under The Given Boundary Conditions," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 9(1), pages 118-126.
    2. Iñaki Permanyer & Nicolai Suppa, 2022. "Racing ahead or lagging behind? Territorial cohesion in human development around the globe," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2086-2101, December.
    3. Federico Attili, 2024. "Uncovering Complexities in Horizontal Inequality: A Novel Decomposition of the Gini Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 173(2), pages 351-376, June.
    4. Anson Au, 2023. "Reassessing the econometric measurement of inequality and poverty: toward a cost-of-living approach," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    5. José Manuel Gavilan-Ruiz & África Ruiz-Gándara & Francisco Javier Ortega-Irizo & Luis Gonzalez-Abril, 2024. "Some Notes on the Gini Index and New Inequality Measures: The nth Gini Index," Stats, MDPI, vol. 7(4), pages 1-12, November.
    6. Luciano Rossoni & Rodrigo Assunção Rosa, 2024. "Reducing the Matthew Effect on Journal Citations through an Inclusive Indexing Logic: The Brazilian Spell (Scientific Periodicals Electronic Library) Experience," Publications, MDPI, vol. 12(1), pages 1-24, February.
    7. Silvia De Nicol`o & Maria Rosaria Ferrante & Silvia Pacei, 2021. "Mind the Income Gap: Bias Correction of Inequality Estimators in Small-Sized Samples," Papers 2107.08950, arXiv.org, revised May 2023.
    8. Neves Costa, Rita & Pérez-Duarte, Sébastien, 2019. "Not all inequality measures were created equal - The measurement of wealth inequality, its decompositions, and an application to European household wealth," Statistics Paper Series 31, European Central Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stéphane Mussard & Michel Terraza, 2009. "Décompositions des mesures d'inégalité : le cas des coefficients de Gini et d'entropie," Recherches économiques de Louvain, De Boeck Université, vol. 75(2), pages 151-181.
    2. Stéphane Mussard & Françoise Seyte & Michel Terraza, 2006. "La décomposition de l’indicateur de Gini en sous-groupes : une revue de la littérature," Cahiers de recherche 06-11, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    3. Antonio Abatemarco, 2010. "Measuring inequality of opportunity through between-group inequality components," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 475-490, December.
    4. St鰨ane Mussard & Patrick Richard, 2012. "Linking Yitzhaki's and Dagum's Gini decompositions," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 2997-3010, August.
    5. Frank Cowell & Emmanuel Flachaire, 2021. "Inequality Measurement: Methods and Data," Post-Print hal-03589066, HAL.
    6. Francisco J. Goerlich-Gisbert & Casilda Lasso de la Vega & Ana Marta Urrutia, 2009. "The ‘extended’ Atkinson family and changes in the expenditure distribution. Spain 1973/74-2003," Journal of Income Distribution, Ad libros publications inc., vol. 18(1), pages 20-41, March.
    7. Tugce, Cuhadaroglu, 2013. "My Group Beats Your Group: Evaluating Non-Income Inequalities," SIRE Discussion Papers 2013-49, Scottish Institute for Research in Economics (SIRE).
    8. Satya R. Chakravarty & Pietro Muliere, 2003. "Welfare indicators: A review and new perspectives. 1. Measurement of inequality," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 457-497.
    9. Magne Mogstad, 2007. "Measuring Income Inequality under Restricted Interpersonal Comparability," Discussion Papers 498, Statistics Norway, Research Department.
    10. Stephen P. Jenkins & John Micklewright, 2007. "New Directions in the Analysis of Inequality and Poverty," Discussion Papers of DIW Berlin 700, DIW Berlin, German Institute for Economic Research.
    11. Anson Au, 2023. "Reassessing the econometric measurement of inequality and poverty: toward a cost-of-living approach," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    12. repec:wsr:wpaper:y:2010:i:062 is not listed on IDEAS
    13. 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.
    14. Casilda Lasso de la Vega & Ana Urrutia, 2008. "The ‘Extended’ Atkinson family: The class of multiplicatively decomposable inequality measures, and some new graphical procedures for analysts," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(2), pages 211-225, June.
    15. Mussard, Stéphane & Pi Alperin, Maria Noel, 2011. "Poverty growth in Scandinavian countries: A Sen multi-decomposition," Economic Modelling, Elsevier, vol. 28(6), pages 2842-2853.
    16. Satya Chakravarty, 2001. "The Variance as a subgroup decomposable measure of inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 53(1), pages 79-95, January.
    17. Stéphane Mussard, 2007. "Between-Group Pigou Dalton Transfers," Cahiers de recherche 07-06, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    18. repec:cte:werepe:2907 is not listed on IDEAS
    19. Magdalou, Brice & Nock, Richard, 2011. "Income distributions and decomposable divergence measures," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2440-2454.
    20. Ferreira,Francisco H. G., 2022. "The Analysis of Inequality in the Bretton Woods Institutions," Policy Research Working Paper Series 10149, The World Bank.
    21. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
    22. Brice Magdalou, 2018. "Income inequality measurement: a fresh look at two old issues," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(3), pages 415-435, October.

    More about this item

    Keywords

    Inequality; Poverty Impact Evaluation; Population Policies; Health Systems Development&Reform; Services&Transfers to Poor;
    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6763. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.