Sankhya: The Indian Journal of Statistics

1993, Volume 55, Series B, Pt. 2, 262--271

A NEW DECOMPOSITION OF THE GINI COEFFICIENT AMONG GROUPS AND ITS INTERPRETATIONS WITH APPLICATIONS TO AUSTRALIA

By

NRIPESH PODDER, The University of New South Wales

SUMMARY. This paper proposes a decomposition of the Gini coefficient among subgroups of population similar to that of the factor components of income. The interpretations of this type of decomposition show that important questions regarding contributions of different subgroups to total inequality can be answered. The additional advantage is that the ambiguity due to overlapping factor in Theil type of between group and within group decomposition of the Gini does not arise in the present method. As a result this type of decomposition is likely to be widely popular in empirical studies.

AMS (1980) subject classification. 62P20

Key words and phrases. Decomposition of the Gini coefficient, population, inequality, between group and within group decomposition

FULL PAPER.

This article in Mathematical Reviews.