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 ()
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Pauline Mornet: LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Jules Sadefo-Kamdem: LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Françoise Seyte: LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Michel Terraza: LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Authors registered in the RePEc Author Service: Jules SADEFO KAMDEM

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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)
Date: 2013-09
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Citations: View citations in EconPapers (5)

Published in Economic Modelling, 2013, 35, pp.944-963. ⟨10.1016/j.econmod.2013.06.016⟩

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Journal Article: The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005 (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02901811

DOI: 10.1016/j.econmod.2013.06.016

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