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Kam Ki Tang and Dennis Petrie
''Non-Hierarchical Bivariate Decomposition of Theil Indexes''
( 2009, Vol. 29 No.2 )
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.
JEL: D3 - Distribution: General
D6 - Welfare Economics: General
Manuscript Received : Dec 10 2008 Manuscript Accepted : May 09 2009

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