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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.

This paper proposes a generalized approach to the issue of decomposing inequality by population subgroups. This generalization uses the concept of Shapley value decomposition and takes into account the fact that either the between or the within groups inequality may be considered as residual terms, that the population size of the subgroups may have an impact on inequality and finally that there are various ways of ranking the individuals when defining the Gini index of inequality. The paper presents an empirical illustration based on the 1998 Israeli Income Survey where the subgroups distinguished are the male- and female-headed households.

Purpose – We propose applying Reardon's approach to the measurement of ordinal segregation to the study of inequality in life chances in the case of ordinal variables. We also propose additional measures of inequality in life chances in such a case.

Methodology – We state the desirable properties of measures of inequality in life chances when the variable under study is ordinal and check which properties are fulfilled by the various indices examined in this chapter.

Findings – All the indices defined in this chapter seem suitable for the analysis of inequality in life chances with ordinal variables but we found some trade-off between indices fulfilling the population composition invariance and those fulfilling the group replication invariance.

Originality – Besides extending the indices suggested by Reardon to the study of inequality of life chances, we propose, to analyze this issue, two additional sets of indices based on the notion of distributional dissimilarity.

Purpose – We analyze equality of opportunity for earnings acquisition in France between 1973 and 1993 defining individual circumstances by parental earnings. We compare two different definitions of circumstances. In the first one they are measured by the father's earnings level, in the second one by the father's rank in the earnings distribution.

Methodology – First we use stochastic dominance tools. Then we decompose the evolution of inequality of opportunity using the mean logarithmic deviation and the results of regressions of descendants’ earnings on their parents’ earnings.

Findings – Inequality of opportunity has remained stable when conditioning on the earnings level of the father, whereas it has diminished when conditioning on his rank in the earnings distribution. The former result is explained by the stable intergenerational earnings elasticity. The latter by the decreasing wage inequality in the previous generation.

Originality – Our analysis emphasizes that the assessment of equality of opportunity and its evolution is very sensitive to the partition of circumstances used. Moreover, it stresses the complementarity between the discrete and the continuous approaches for measuring inequality of opportunity.

The purpose of this paper is to first develop indicators for how total inequality, measured through the ANalysis Of GIni (ANOGI) framework, is mapped onto each group – i.e. indicators for each group's share of total inequality. Second, to develop indicators for the sensitivity of total inequality and its structure to changes in the composition of the population. Specifically, to develop indicators for how the Gini index and its ANOGI components react to (1) changes in the population-share of each group, (2) migration between groups, (3) changes in group incomes and (4) income transfers between groups.

First, the expressions for these indicators are derived analytically. Following this, the indicators are applied to labour-market data from Brazil, contrasting the results to others available in the literature.

The indicators described above are presented and their characteristics discussed. Empirically, it is illustrated how labour formalisation in Brazil was an inequality-reducing process between 2002 and 2011, contrary to previous incorrect measurements of the phenomenon based on income-source decompositions for Latin American countries.

Indicators for how total inequality reacts to changes in group sizes and income were unavailable for the ANOGI framework, which this article provides. The empirical illustration shows how this leads to a reassessment of important inequality dynamics, using the example of labour formalisation in Brazil. Contrary to the existing literature, it is shown how this was a progressive development, with key implications for social and labour-market policy. This framework can be used to assess the impact of diverse processes in the ANOGI methodology.

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.

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.

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.

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.

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

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.

A continuous mixed opinion on the relevance of caste-based reservations and caste as a factor of socioeconomic disparity in the recent period demands update of evidence on socioeconomic inequalities among caste groups for effective policy making. The purpose of this paper is to investigate whether the caste inequalities in terms of socioeconomic opportunities and poverty are still persisting in rural Uttar Pradesh based on village census surveys?

This study used data primarily collected from four village census surveys under the project rural transformation in Uttar Pradesh, 2013. Bivariate analyses, human opportunity index (HOI), multidimensional poverty index (MPI) and inequality decomposition analyses used as methods of analyses.

The authors findings suggest that in spite of more than six decades of welfare policies and major political mobilization movements among lower castes in the state, the huge inequalities in terms of critical socioeconomic indicators such as landholding, higher education and wealth distribution and multi-dimensional poverty across the castes are still persisting in the state. Decomposition results suggest that between group inequalities contribute more to the total inequality in landholding whereas within group inequalities contribute maximum to total inequality in education and wealth status of different castes in rural Uttar Pradesh. However, within inequalities much less in general castes compared to SCs/OBCs.

Based on its latest empirical evidence, this study strengthens the argument that caste still matters in socioeconomic achievements of the population in India even after decades of planning and financing of social welfare schemes to uplift the lower castes in India. Thus, provides critical inputs to current debates on the relevance of caste as a determinant of socioeconomic status in India.

It is widely agreed that income inequality has increased in OECD countries over the past two decades. Most of the debate has focused on the distinction between skilled and unskilled workers. However inequality increased not only among those with different observable traits but also within groups of workers with the same characteristics such as gender, race, education and experience. This poses a challenge for theories that try to explain the rise in overall earnings inequality. Indeed, is income inequality within groups explained by the same reasons that have led to income inequality between groups? It appears that some reasons are specific to inequality within groups. For instance, greater access to education has led to some confusion about the standard associated with the same educational level. Consequently, innate ability plays an increasing part in the determination of workers’ rewards. Similarly, the reduction of the size of the public sector may have contributed to the rise of the variability of the demand for skills. However, the central reason – innovation, notably the introduction of new technologies – is common to both types of inequality but it acts on within‐group income inequality through specific channels. Among the latter are the role of innate ability, the shift toward a decentralised wage determination system, and the changes of the demand for skills. Therefore, the explanations of within‐group inequality are complementary to the ones associated with between‐group inequality and thus help to explain the rise in overall earnings inequality.

The purpose of this paper is to analyse the social and economic disparities across social groups in rural Uttar Pradesh. The paper demonstrates that the structure of the rural economy in India is characterised by deeply ingrained prejudices and social discrimination. The four-village study undertaken in one of the most populated states in India, Uttar Pradesh, clearly reveals that there is a huge disparity in terms of various social and economic indicators and that the so-called high growth has hardly helped in bettering their lives.

The paper is based on primary data collected from the Census survey of villages exploring socio-economic disparities across social groups by using decomposition models.

The results evidently lend credence to the postulations that a large proportion of the disadvantaged groups are prone to multiple deprivations, both in the society and in labour markets. The inquiry reveals this phenomenon clearly.

From the policy point of view, it is therefore imperative to ensure the direct and focussed provision of basic human requirements in terms of education, employment and income of the state. The implementation of direct policy interventions is an absolute necessity if the state has to guarantee convergence and the inclusive growth process on a sustained basis.

This paper fulfils an identified need to study the inequality among the social groups in terms of education, employment, income and livelihood opportunities in selected villages of four districts of Uttar Pradesh.

This chapter focuses on an important aspect of economic inequality – the question of how people perceive inequality and whether these perceptions deviate in any meaningful way from statistical measures of inequality. Using a novel approach, the author investigates whether individuals across different countries are able to correctly estimate the shape of income distribution of the country where they reside. The author further investigates whether individuals have the distribution of a particular reference group in mind when they answer questions on inequality. The author finds that perceptions of inequality are frequently shaped by reference groups such as those formed according to educational attainment, age, and gender.