On the link between the coefficient of determination and polarization

Federico Palacios-González and Rosa María García-Fernández ()
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Federico Palacios-González: University of Granada
Rosa María García-Fernández: University of Granada

No 196, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: In this paper, taking as starting point the link between polarization and dispersion, we reformulate the measure of polarization of Zhang and Kanbur (2001) using the decomposition of the variance instead of the decomposition of the Theil index. The proposed measure is equivalent to the coefficient of determination of an ANOVA Linear Model, that explains the income of the households as a function of any population characteristic e.g. education, gender, occupation etc. This result provides an alternative way to analyze polarization by household characteristics and at the same time allows us to compare sub-populations via the estimated coefficients of the ANOVA model.

Keywords: Polarization; coefficient of determination; ANOVA model. (search for similar items in EconPapers)
JEL-codes: D31 D63 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2011-196

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