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Title:A Review of Decomposition of Income Inequality PDF Logo
Authors:Heshmati, Almas
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1221
Abstract:This paper is a review of recent developments of parametric and non-parametric approaches to decompose inequality by subgroups, income sources, causal factors and other unit characteristics. Different methods of decomposing changes in poverty into growth, redistribution, poverty standard and residual components are described. In parametric approaches the dynamics of income accounting for transitory and permanent changes in individual and household earnings conditional of various covariates are also reviewed. Statistical inferences for inequality measurement including delta and bootstrapping and other methods to provide estimates of the sampling distribution are presented. These issues are important in the design of policy measures and expectations about their impacts on earnings inequality and poverty reductions.
Subjects:income inequality
poverty
decomposition
parametric
non-parametric
Gini index
JEL:N30
I32
D31
C10
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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