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A New Approach to the Decomposition of the Gini Income Inequality Ratio

Dagum, Camilo·1998·Income Inequality, Poverty, and Economic Welfare

Abstract

The purpose of this research is to introduce a new approach to the decomposition of the Gini ratio into three components, supporting them with economic and statistical rigorous interpretations. The three components are: (i) the Gini inequality within subpopulations; (ii) the net contribution of the extended Gini inequality between subpopulations; and (iii) the contribution of the intensity of transvariation between subpopulations. These components are weighted by the product of the population shares times the income shares of the corresponding subpopulations where the weights add to one. The decomposition introduced in this research is applied to the 1990 U.S. family income distribution. The population of families is disaggregated by types into the following subpopulations: (a) married-couple families; (b) male householder, no wife present; and (c) female householder, no husband present.

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Metadata

Authors
Dagum, C.
Venue
Income Inequality, Poverty, and Economic Welfare
Published
1998
Pages
47-63
OpenAlex
W1972191795
Cited by
379
References
20
FWCI
26.51
Type
book chapter
Language
en
Open access
closed

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CoChat. (2026). Citation check: A New Approach to the Decomposition of the Gini Income Inequality Ratio. https://app.cochat.ai/papers/10.1007/978-3-642-51073-1_4
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Dagum, C. (1998). A New Approach to the Decomposition of the Gini Income Inequality Ratio. Income Inequality, Poverty, and Economic Welfare. https://doi.org/10.1007/978-3-642-51073-1_4

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