On Dagum’s Decomposition of the Gini Coefficient

William Griffiths ()

No 1054, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: To measure the contributions to inequality from population subgroups, the Gini coefficient is often decomposed into inequality within groups, inequality between groups and a residual term arising from the overlapping of income distributions from different groups. In this paper we show that two decompositions presented separately in the literature, a traditional decomposition and a decomposition suggested by Dagum (1997), are identical, a fact not previously acknowledged in the literature

Keywords: population subgroups; between inequality; within inequality (search for similar items in EconPapers)
JEL-codes: D31 D63 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2008
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