Abstract
When total income consists of a number of factors, the Gini coefficient measuring income inequality can be decomposed into factor components. Some traditional decomposition methods rely on calculating the covariances between incomes and their ranks. Such methods have obvious limitations in empirical studies. This paper develops a simple decomposition approach applicable for any type of data with an example to demonstrate how income inequality in rural China in 1992 can be decomposed into agricultural and non-agricultural components.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.