Decomposition of inequality change into pro-poor growth and mobility components: -dsginideco-

Stephen Jenkins () and Philippe Van Kerm ()

United Kingdom Stata Users' Group Meetings 2009 from Stata Users Group

Abstract: This short talk describes the module -dsginideco- which decomposes the change in income inequality between two time periods into two components, one representing the progressivity (pro-poorness) of income growth, and the other representing reranking. Inequality is measured using the generalized Gini coefficient, also known as the S-Gini, G(v). This is a distributionally-sensitive inequality index, with larger values of v placing greater weight on inequality differences among poorer (lower ranked) observations. The conventional Gini coefficient corresponds to thecase v = 2. The decomposition is of the form: final-period inequality - initial-period inequality = R - P where R is a measure of reranking, and P is a measure of the progressivity of income growth. For full details of the decomposition and an application, see S.P. Jenkins and P. Van Kerm (2006), "Trends in income inequality, pro-poor income growth and income mobility", Oxford Economic Papers, 58(3): 531-548.

New Economics Papers: this item is included in nep-ltv
Date: 2009-09-16

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http://repec.org/usug2009/Jenkins-VanKerm.dsginideco.pdf presentation slides (application/pdf)

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Persistent link: http://EconPapers.repec.org/RePEc:boc:usug09:11

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