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On the Decomposition of the Foster and Wolfson Bi‐Polarization Index by Income Sources

Elena Barcena (), Joseph Deutsch and Jacques Silber ()

Review of Income and Wealth, 2018, vol. 64, issue 4, 853-871

Abstract: This paper proposes a simple algorithm based on a matrix formulation to compute the Foster and Wolfson bipolarization index and then to decompose it by income sources. An empirical illustration based on EU‐SILC data for the years 2007 and 2014 shows the usefulness of the proposed decomposition.

Date: 2018
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