Sociological Theory and Methods
Online ISSN : 1881-6495
Print ISSN : 0913-1442
ISSN-L : 0913-1442
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Parametric Decomposition of the Gini Coefficient:
How Change of Subgroup Affect an Overall Inequality
Hiroshi HAMADA
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2005 Volume 20 Issue 2 Pages 241-256

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Abstract
The purpose of this study is to analyze the relationship between parameters of subpopulation and the Gini coefficient of whole society. For this purpose, we introduce a parametric decomposition of the Gini coefficient under the condition that each income in a subpopulation is subject to the lognormal distribution. By this condition, the overall Gini coefficient can be expressed as a function of the parameters of subpopulation's distribution, that is μi and σi. Applications of the parametric decomposition are made to the household income distribution that consists of age-subpopulations in Japan.
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© 2005 Japanese Association For Mathematical Sociology
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