Decomposition of the Gini Index by Sources of Income |
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Authors: | Alina Jędrzejczak |
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Institution: | (1) Institute of Econometrics and Statistics, University of Łódź, 41 Rewolucji 1905r.Łódź, 90-214 Łódź, Poland |
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Abstract: | The Gini concentration coefficient is considered to be the best synthetic inequality measure and is widely used in economic
research. In this paper, we present its decomposition by factor components with an application to income distributions in
Poland. Income inequality measures proposed by Gini, Zenga and Bonferroni are calculated for different socio-economic groups
based on their exclusive or primary source of maintenance. For theoretical income distribution, the Dagum type-I model was
used. The basis for the calculations was the individual data coming from the Household Budgets Survey conducted quarterly
by the Polish Central Statistical Office. Using the decomposition of inequality by source, we were able to examine how changes
in particular income components affected overall inequality.
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Keywords: | Income inequality Income distribution |
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