This paper develops a method to conduct non hierarchical bivariate decomposition of Theil indexes. The method has the merits that, first, it treats all variates symmetrically and therefore facilitates the comparison of inequalities associated with different variates; and, second, it highlights the interaction between variates in the creation of inequality. The method is applied to measure gender and ethnic income inequality in Australia.
|Name||Centre for Efficiency and Productivity Analysis Working Paper Series|
|Publisher||Centre for Efficiency and Productivity Analysis|
- Theil index
- Hierarchical decomposition