EXTENSIONS OF DAGUM’S GINI DECOMPOSITION

The purpose of this paper is to extend Dagum’s Gini decomposition (“A New Approach to the Decomposition of the Gini Income Inequality Ratio”, Empirical Economics 22(4), 515-531, 1997a) following three types of theoretical modelisation. The first one deals with a “poor/non-poor” decomposition within a sub-group multilevel framework. The second one exhibits the multi-decomposition technique, that is, the combination of the sub-group and the income source decomposition. Finally, we provide a parametric multi-decomposition in order to capture different dimensions of income inequality within groups and between groups.