The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005

Pauline Mornet (), Claudio Zoli, Stéphane Mussard, Jules Sadefo-Kamdem, Françoise Seyte and Michel Terraza
Authors registered in the RePEc Author Service: Jules SADEFO KAMDEM

Economic Modelling, 2013, vol. 35, issue C, 944-963

Abstract: We propose a generalization of the decomposition by population subgroups of the α-Gini index, the so-called multi-level subgroup decomposition. We demonstrate that all components obtained from the decomposition, can integrate in their functional form a parameter of inequality sensitivity being either related to overall inequalities (α) or to between-group non-overlappings (β). We prove that a decision maker who behaves in accordance with the α-Gini indices is sensitive to the inequalities between the groups when this sensitivity may differ for each partition of groups. For that purpose, we check the axiomatic foundations of this new family of measures providing also a characterization for the α-Gini indices where α>2. An illustration of the multi-level α-Gini decomposition is performed for the analysis of the income disparities in France in 2005.

Keywords: Inequality aversion; α-Gini; Multi-level decomposition; Subgroup decomposition (search for similar items in EconPapers)
JEL-codes: D31 D63 D69 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:35:y:2013:i:c:p:944-963

DOI: 10.1016/j.econmod.2013.06.016

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