A new method is proposed to decompose inequality changes as measured by the Gini index1 into structural effects, real inequality effects and interactive effects. Application the method to updated Chinese data reveals that structural effects represent the driving force underlying the increasing...

A considerable literature exists on the measurement of income inequality in China and its increasing trend. Much less is known about the driving forces of this trend and their quantitative contributions. Conventional decompositions, by factor components or by population subgroups, provide only...