revised version published in: A. Heshmati (Ed), Global Trends in Income Inequality, Hauppauge, NY: Nova Science Publishers, 2007, 27-48
This paper is a review of recent developments of parametric and non-parametric approaches
to decompose inequality by subgroups, income sources, causal factors and other unit
characteristics. Different methods of decomposing changes in poverty into growth,
redistribution, poverty standard and residual components are described. In parametric
approaches the dynamics of income accounting for transitory and permanent changes in
individual and household earnings conditional of various covariates are also reviewed.
Statistical inferences for inequality measurement including delta and bootstrapping and other
methods to provide estimates of the sampling distribution are presented. These issues are
important in the design of policy measures and expectations about their impacts on earnings
inequality and poverty reductions.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.