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Describing income inequality : Theil Index and Entropy Class Indexes 










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    Policy impacts on inequality: Decomposing Inequality by Source   2006
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    This tool illustrates how to decompose inequality measures by income sources. In particular, it discusses this decomposition in the context of the Gini and the Theil Indexes. A step-by-step procedure and numerical examples give operational content to the tool.
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    Policy Impacts on Inequality: Inequality and Axioms for its Measurement  2006
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    This tool illustrates the concept of desirable properties any inequality index should respect. In particular, it introduces the distinction between a positive and a normative approach to inequality analysis. Then, it discusses the role of axioms in inequality measurement and their conceptual meaning. Finally, using the Gini Index and the variance, a step-by-step procedure and numerical examples are introduced for operational purposes.
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    Policy impacts on inequality: Decomposition of Income Inequality by Subgroups  2006
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    This tool illustrates how to decompose inequality measures by subgroups of populations. In particular, it defines the concepts of within and between inequality and analyses how different inequality indexes perform with respect to this decomposition. In particular, the performance of the analysis of variance, the Gini Index and the Theil Index will be discussed. A step-by-step procedure and numerical examples give operational content to the tool.

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