The evaluation of gender income inequality by means of the Gini index decomposition

This paper proposes to measure and to evaluate gender gaps and gender inequalities by means of the decomposition of an inequality measure. A three-terms decomposition of the Gini index is applied, thus allowing to take into account also the role of overlapping between female and male subpopulations. We develop an unified framework for the evaluation of gender gap, linking traditional measures, based on subgroups income means, to the approach related to inequality decomposition, and showing how overlapping component represents a key issue in gender gap analysis. An analysis of the income distribution of the Italian households shows how gender gaps represent a major source of inequality, without particular improvements during the last 20 years

Gini index decomposition for the case of two subgroups

In the framework of inequality measures decompositions, the paper introduces an immediate and straightforward simplification for the Gini index when a population is divided in two subgroups. Since one of the key points in inequality analysis is represented by the role of overlapping units, a simulation study is developed in order to analyze the effects of the overlapping component on inequality decomposition. Simple expressions for the measurement of either overlapping component and inequality between are derived, which allow to correctly evaluate and compare the effects of different factors on total inequality

Gini index decomposition for the case of two subgroups

In the framework of inequality measures decompositions, the paper introduces an immediate and straightforward simplification for the Gini index when a population is divided in two subgroups. Since one of the key points in inequality analysis is represented by the role of overlapping units, a simulation study is developed in order to analyze the effects of the overlapping component on inequality decomposition. Simple expressions for the measurement of either overlapping component and inequality between are derived, which allow to correctly evaluate and compare the effects of different factors on total inequality