Comment: On the Interpretation (and Misinterpretation) of Inequality Decompositions by Income Sources

Ayal Kimhi

World Development, 2011, vol. 39, issue 10, 1888-1890

Abstract: This paper discusses interpretations of different inequality decomposition rules when inequality is decomposed by income sources. It argues that authors of a recent article based their conclusions on misinterpreted decomposition results. It also argues that marginal effects, derived as elasticities of inequality with respect to uniform increases in income from each source, are easily interpreted and can be compared across different decomposition rules.

Keywords: income inequality; income sources; decomposition; interpretation; marginal effects (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:39:y:2011:i:10:p:1888-1890

DOI: 10.1016/j.worlddev.2011.08.001

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