Between groups and total income inequality indices; U.S. 19601

The study contains a theoretical analysis on the behavior of a between groups Lorenz Index. The variables affecting this index are utilized to construct between groups indices for white-non-white; rural-urban; above 65 yr old-younger; population groups by state for 1960. The constructed indices were then used as explanatory variables for the state total Lorenz Index. It was found that they explained over 80 per cent of the variance. Adding other socio-economic variables enabled us to explain over 90 per cent of the variance of state Lorenz indices.