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Book part
Publication date: 15 December 2004

Shlomo Yitzhaki and Quentin Wodon

Mobility implies initial and final distributions and a transition process linking the observations of these two distributions. An inequality index describes properties of…

Abstract

Mobility implies initial and final distributions and a transition process linking the observations of these two distributions. An inequality index describes properties of the intitial or final distribution. A mobility index describes the transition. In most cases, mobility indices have been developed using properties of transition matrices independently of the concepts of inequality and equity that may also be used in the analysis. This paper presents a new tool – the Gini index of mobility – that provides an overall consistent framework for the analysis of mobility, inequality, and horizontal equity. The theoretical concepts are illustrated empirically using panel data from rural Mexico.

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Studies on Economic Well-Being: Essays in the Honor of John P. Formby
Type: Book
ISBN: 978-0-76231-136-1

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Book part
Publication date: 30 October 2009

Satya R. Chakravarty, Conchita D'Ambrosio and Jacques Silber

This article axiomatically derives a class of numerical indices of integration (equality) in the distribution of different types of workers across occupations. The…

Abstract

This article axiomatically derives a class of numerical indices of integration (equality) in the distribution of different types of workers across occupations. The associated segregation (inequality) indices parallel one form of multidimensional generalized Gini inequality indices. A comparison is made with the other Gini-related segregation indices. A numerical illustration of the family of indices is also provided using US occupational data.

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Occupational and Residential Segregation
Type: Book
ISBN: 978-1-84855-786-4

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Book part
Publication date: 31 December 2010

Joseph Deutsch

Income polarization is a relatively new concept introduced in the literature of the measurement of income inequality. It has essential properties that may be used to…

Abstract

Income polarization is a relatively new concept introduced in the literature of the measurement of income inequality. It has essential properties that may be used to measure relative deprivation and it adds another dimension to the measurement of income inequality concerned mainly with the middle income class (Esteban and Ray, 1994). No study, however, seems to have tried to decompose by population subgroups any of the polarization indices that have appeared in the literature. This study introduces a methodology that decomposes the polarization index recently suggested by Deutsch et al. (2007) by population subgroups. This polarization index is related to the Gini index and its components so that previous results on the decomposition of the Gini index may be applied. Two main cases are examined, that of nonoverlapping groups and overlapping groups. The paper also includes an empirical analysis based on Israeli data for the period 1990–2004, which covers the case of nonoverlapping (income) groups as well as that of overlapping groups, the latter being either Jews of Western and Eastern origin or Jews and Non-Jews. The empirical analysis shows a decrease in polarization over the period 1990–2002 and an increase in polarization during the years 2002–2004. Using the Shapley methodology we analyze the contribution of the different factors to the trend in polarization observed over time.

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Migration and Culture
Type: Book
ISBN: 978-0-85724-153-5

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Article
Publication date: 9 March 2012

Rukmani Gounder and Zhongwei Xing

Measures of inequality determine the effectiveness of social and economic policies aimed at reducing inequality and to design effective intervention policies. The purpose…

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Abstract

Purpose

Measures of inequality determine the effectiveness of social and economic policies aimed at reducing inequality and to design effective intervention policies. The purpose of this paper is to focus on poverty reduction and welfare improving impacts of reducing income inequality in the case of Fiji. Using Fiji's Household Income and Expenditure Survey 2002‐2003, a comprehensive analysis is used to measure the level of inequality by household income, quintile income distribution, decomposition of inequality by ethnicity and regional groups, and the household income inequality by source of income.

Design/methodology/approach

Several statistical techniques have been applied to investigate the degree of inequality in the household income. These include the Gini coefficient, the Nelson ratio, the concentration index and the Atkinson index. An evaluation by ethnicity, regions and household income sources reflects the level of inequality, and concerns for policies and governance.

Findings

The results show that urban households, in particular, experience greater inequalities, in both positive and normative terms. The Indo‐Fijian households experience greater income inequalities than the Fijian households. Decomposition results for the separate factor income components also indicate major sources of inequality. These findings clearly establish that Fiji still has a long way to go in reducing the income gaps between the rich and the poor in both rural and urban households.

Originality/value

The paper is a first study that estimates various measures of inequality in the case of Fiji. The implication of the empirical findings suggests that Fiji is unlikely to achieve its Millennium Development Goal of halving poverty rate by 2015 due to the large income differentials by ethnicity and in the urban‐rural areas.

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International Journal of Social Economics, vol. 39 no. 4
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 9 October 2017

Krishna Malakar and Trupti Mishra

The purpose of this paper is to propose the application of Gini, Theil and concentration indices for measuring inequality in water usage.

Abstract

Purpose

The purpose of this paper is to propose the application of Gini, Theil and concentration indices for measuring inequality in water usage.

Design/methodology/approach

Gini coefficients and Theil indices have been used to estimate the overall inequality in domestic water use in a sample of 30 countries around the world. Along with Theil’s L (unweighted) index, liters per capita per day and gross national income weighted Theil index have also been estimated. Theil indices have been further disintegrated into within- and between-group inequalities. Concentration curve is also constructed to study the inequality in water use in accordance to the countries’ economic standing.

Findings

Domestic water use is high among the well-off countries considered in the study. Also, the Theil indices indicate that between group inequality contributes more to the overall inequality. It is observed that Theil indices, which consider only per capita water usage and can be decomposed, give a better insight into the existing inequality.

Practical implications

Different approaches were used to quantify inequality. The choice of index depends on the context of the study. The proposed approaches can contribute to planning of sustainable water management and development policies.

Originality/value

There is a dearth of metrics for quantifying inequality in water access or use. The study presents the application of indices, widely used in quantifying inequality in access to other resources such as income and energy, in assessing water inequality.

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International Journal of Social Economics, vol. 44 no. 10
Type: Research Article
ISSN: 0306-8293

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Book part
Publication date: 30 October 2009

Paul A. Jargowsky and Jeongdai Kim

Purpose – We propose the Information Theory of Segregation, which holds that all measures of segregation and of inequality are united within a single conceptual framework…

Abstract

Purpose – We propose the Information Theory of Segregation, which holds that all measures of segregation and of inequality are united within a single conceptual framework. Accepting this framework implies that all measures of inequality can also be used to measure segregation and that all measures of segregation are fundamentally based on measures of inequality.

Methodology – We state several propositions that follow from the information theory perspective, and show mathematically that many common measures of inequality and segregation satisfy the propositions.

Findings – We show that all common measures of inequality can be used to form measures of segregation and that the resulting measures can be applied to binary, polytomous, and continuous variables. Further, we develop several new measures, including a Gini Segregation Index (GS) for continuous variables and Income Dissimilarity Index (ID), a version of the Index of Dissimilarity suitable for measuring economic segregation. We show that segregation measures can easily be adapted to handle persons of mixed race, and describe the Non-Exclusive Index of Dissimilarity (NED) and the Non-Exclusive Entropy Index of Segregation (NEH). We also develop a correction for structural constraints on the value of segregation measures, comparable to capacity constraints in a communications channel, which prevent them from reaching their theoretical maximum or minimum value.

Originality – Placing inequality and segregation measures in a common framework is useful for several reasons. It highlights a common mathematical structure shared by many different segregation measures, and it suggests certain useful variants of these measures that have not been recognized previously.

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Occupational and Residential Segregation
Type: Book
ISBN: 978-1-84855-786-4

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Article
Publication date: 20 August 2018

Indra Indra, Suahasil Nazara, Djoni Hartono and Sudarno Sumarto

The purpose of this paper is to investigate the relationships between expenditure inequality and expenditure polarization in Indonesia during the post-reformation era in…

Abstract

Purpose

The purpose of this paper is to investigate the relationships between expenditure inequality and expenditure polarization in Indonesia during the post-reformation era in 2002–2012. It also explores the various dimensions of regional groups; and finds out in which dimension did the expenditure inequality and polarization occur in Indonesia during the period.

Design/methodology/approach

Gini index was employed to measure expenditure inequality and a number of developed polarization measurement was applied to investigate the linkage between inequality and polarization at national levels. It also applied a polarization index based on inequality decomposition to investigate how the polarization occurs in the regional dimension. It covered several groups of regional dimensions; those are rural and urban areas; eastern and western regions, as well as natural resource-rich provinces and non-natural resource-rich provinces.

Findings

This study found that expenditure inequality and polarization in Indonesia have moved in line, showing an increasing trend during the observation period. In the regional context, the greatest rise was in the region with low initial levels of expenditure inequality and polarization. The trends in each of the regional dimension showed a convergent pattern. It also showed that a significant portion of total polarization was attributed to expenditure differences between urban and rural areas rather than the other groups of regions.

Research limitations/implications

The similar upward movement of expenditure inequality and polarization indicates that not only the differences between groups of expenditure are getting larger, but also the identification of the within groups expenditure are getting stronger. Since the high degree of inequality and polarization are closely related to conflict among groups of communities, this finding is a strong message to the policymaker that the development process in Indonesia during 2002–2012 tended to encourage the creation of social instability.

Practical implications

This study provides an evaluation for further development of social economy in Indonesia.

Originality/value

This paper attempts to give an overview of the relationship between expenditure inequality and polarization in Indonesia during 2002–2012. It also tries to reveal in which regional dimension, expenditure inequality and polarization occurred in Indonesia during the mentioned period. The issues have not been examined in previous empirical studies in Indonesia.

Details

International Journal of Social Economics, vol. 45 no. 10
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 1 March 2016

Jay E. Ryu

This paper investigates whether an outcome-based school aid formula could improve fiscal and outcome equity significantly more than a typical aid formula would. When…

Abstract

This paper investigates whether an outcome-based school aid formula could improve fiscal and outcome equity significantly more than a typical aid formula would. When outcome-based formula is applied to foundation aid, fiscal and outcome equity deteriorates compared to Ohio's recent aid formula. However, when it is applied to power-equalizing aid, the latter improves fiscal and outcome equity more significantly than both foundation aid and Ohio's recent aid formula do. This paper further shows how to apply them to real-world cases. The lessons from this paper can be easily applied to similar grant systems with standardized test scores.

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Journal of Public Budgeting, Accounting & Financial Management, vol. 28 no. 3
Type: Research Article
ISSN: 1096-3367

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Article
Publication date: 22 February 2021

Jinshan Ma, Di Tian and Jinmeng Yue

This paper is to propose a novel generalized grey target decision method (GGTDM) with index and weight both containing mixed types of data.

Abstract

Purpose

This paper is to propose a novel generalized grey target decision method (GGTDM) with index and weight both containing mixed types of data.

Design/methodology/approach

The decision-making steps of the proposed approach are as follows. First, all mixed attribute values of alternatives and weights are transformed into binary connection numbers and also comprised two-tuple (determinacy, uncertainty) numbers. Then, the two-tuple (determinacy, uncertainty) numbers of target center indices are calculated. Next, the certain weights are determined by the Gini–Simpson (G–S) index-based method. Following this, the comprehensive-weighted Kullback–Leibler distances (CWKLDs) of all alternatives and the target center are obtained. Finally, the alternative ranking relies on the CWKLD considering the smaller value as the better option.

Findings

The certain weights determined by the improved Gini–Simpson index (IGSI) based method are more accurate in compared with that by the proximity-based method and the weight function method. The discrimination ability of alternatives ranking of the proposed approach is stronger than that of the compared comprehensive-weighted proximity (CWP) based method and comprehensive-weighted Gini–Simpson index (CWGSI) based method.

Research limitations/implications

The proposed method fulfills the decision-making task relying on CWKLD, which solves the uncertain measurement from the viewpoint of entropy.

Originality/value

The proposed approach adopts the IGSI to transform uncertain weights into certain ones and takes the CWKLD as the basis for the decision-making.

Details

Grey Systems: Theory and Application, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-9377

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Book part
Publication date: 30 December 2013

Bénédicte Apouey and Jacques Silber

Traditional indices of bi-dimensional inequality and polarization were developed for cardinal variables and cannot be used to quantify dispersion in ordinal measures of…

Abstract

Traditional indices of bi-dimensional inequality and polarization were developed for cardinal variables and cannot be used to quantify dispersion in ordinal measures of socioeconomic status and health. This chapter develops two approaches to the measurement of inequality and bi-polarization using only ordinal information. An empirical illustration is given for 24 European Union countries in 2004–2006 and 2011. Results suggest that inequalities and bi-polarization in income and health are especially large in Estonia and Portugal, and that inequalities have significantly increased in recent years in Austria, Belgium, Finland, Germany, and the Netherlands, whereas bi-polarization significantly decreased in France, Portugal, and the United Kingdom.

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Health and Inequality
Type: Book
ISBN: 978-1-78190-553-1

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