Multi-Decomposition of Income Inequality in Iran: Generalized Gini Coefficient Approach

Authors

1 Associate Professor at Bu-Ali Sina University

2 MA in Economics at Bu-Ali Sina University

Abstract

 
In this study we propose that simultaneous decomposition of Gini coefficient into household income sources and population subgroups may measure the inequality due to income sources within and between subgroups. Therefore, using multi-decomposition of Gini coefficient, we can identify the shares of inequality sources within / between population groups and make more informed decisions to reduce inequality. For this purpose, we divide household income sources into 12 categories, and divide population groups into poor and non-poor using household expenditure and income data in 1389 (2011). We also consider the share of various sources and groups in both rural and urban areas. The results show that in the urban areas, miscellaneous incomes (in money term) besides wage and salary of the public sector (in money term) have the largest share in the income inequality, which originates from inequality within the non-poor subgroup. In contrast, in rural areas, income from agricultural self-employment (in money term), have the largest share of income inequality that stems widely from inequality within the non-poor sub-group

Keywords

References

 
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