Arbeitspapier

Gini decompositions and Gini elasticities: On measuring the importance of income sources and population subgroups for income inequality

This paper points to flaws in Gini decompositions by income sources and population subgroups and to common pitfalls in the interpretation of decomposition results, focusing on methods within the framework of Rao (1969). We argue that within this framework Gini elasticities may provide the only meaningful way to examine the relevance of income sources or population subgroups for total income inequality. Moreover, we show that existing methods are unsuitable to decompose the trend in the Gini coefficient and provide a coherent method to decompose the Gini trend by income sources. We add to the recent trend of multi-decompositions by deriving Gini elasticities from a simultaneous decomposition by income sources and population subgroups.

Sprache
Englisch

Erschienen in
Series: Diskussionsbeiträge ; No. 2014/22

Klassifikation
Wirtschaft
Index Numbers and Aggregation; Leading indicators
Personal Income, Wealth, and Their Distributions
Factor Income Distribution
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Thema
income inequality
Gini decomposition
Gini elasticity
income sources
population subgroups
multi-decomposition

Ereignis
Geistige Schöpfung
(wer)
Jurkatis, Simon
Strehl, Wolfgang
Ereignis
Veröffentlichung
(wer)
Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
(wo)
Berlin
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Jurkatis, Simon
  • Strehl, Wolfgang
  • Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft

Entstanden

  • 2014

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