Parametric decomposition of the Gini coefficient: How change of subgroup affect an overall inequality

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Abstract

The purpose of this study is to analyze the relationship between parameters of subpopulation and the Gini coefficient of whole society. For this purpose, we introduce a parametric decomposition of the Gini coefficient under the condition that each income in a subpopulation is subject to the lognormal distribution. By this condition, the overall Gini coefficient can be expressed as a function of the parameters of subpopulation's distribution, that is μi and σi. Applications of the parametric decomposition are made to the household income distribution that consists of age-subpopulations in Japan.

Original languageEnglish
Pages (from-to)241-256
Number of pages16
JournalSociological Theory and Methods
Volume20
Issue number2
Publication statusPublished - 2005 Dec

Keywords

  • Decomposition of Gini coefficient
  • Gini coefficient
  • Income distribution

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