In this work we apply a new approach to assess contributions from factor components to income inequality. The new approach is based on the insight that most (synthetic) inequality indexes may be viewed as (weighted) averages of point inequality measures, which measure inequality between population subgroups identified by income. Assessing contributions of factor components to point inequality measures is usually an easy task, and based on these contributions it is straightforward to define contributions to the corresponding (synthetic) overall inequality indexes as well. As we shall show through an analysis of income data from Eurostat's European Community Household Panel Survey (ECHP), the approach based on point inequality measures gives rise to readily interpretable results, which, we believe, is an advantage over other methods that have been proposed in literature.

Pasquazzi, L., Zenga, M. (2018). Components of Gini, Bonferroni, and Zenga Inequality Indexes for EU Income Data. JOURNAL OF OFFICIAL STATISTICS, 34(1), 149-180 [10.1515/jos-2018-0008].

Components of Gini, Bonferroni, and Zenga Inequality Indexes for EU Income Data

Pasquazzi, Leo
;
Zenga, Michele
2018

Abstract

In this work we apply a new approach to assess contributions from factor components to income inequality. The new approach is based on the insight that most (synthetic) inequality indexes may be viewed as (weighted) averages of point inequality measures, which measure inequality between population subgroups identified by income. Assessing contributions of factor components to point inequality measures is usually an easy task, and based on these contributions it is straightforward to define contributions to the corresponding (synthetic) overall inequality indexes as well. As we shall show through an analysis of income data from Eurostat's European Community Household Panel Survey (ECHP), the approach based on point inequality measures gives rise to readily interpretable results, which, we believe, is an advantage over other methods that have been proposed in literature.
Articolo in rivista - Articolo scientifico
factor components; Inequality decomposition; point inequality measures; synthetic inequality index;
English
2018
34
1
149
180
reserved
Pasquazzi, L., Zenga, M. (2018). Components of Gini, Bonferroni, and Zenga Inequality Indexes for EU Income Data. JOURNAL OF OFFICIAL STATISTICS, 34(1), 149-180 [10.1515/jos-2018-0008].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/213161
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