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Policy Impacts on Inequality: Inequality and Axioms for its Measurement 










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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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    Monitoring Policy Impacts (MPI): The Eight Methodo-"logical" Steps for MPI  2005
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    This Module presents the eight methodo-“logical” steps for monitoring policy impacts (MPI), comprising:

    • Step 1: Initiation and preparation of MPI
    • Step 2: Policy review and analysis
    • Step 3: Development of the impact model
    • Step 4: Selection of impact indicators
    • Step 5: Research design
    • Step 6: Information and data collection
    • Step 7: Data compilation, processing and analysis
    • Step 8: Feedback of results of MPI t o policy makers, clients, public.

    The activities to be performed on the various steps are described, and an overview of the methods to be applied in performing these activities is given. It is pointed out that the eight steps represent a logical sequence but that the steps are closely interlinked and that there are likely possible feed back cycles to previous steps. In a concluding section, conditions for a practical application of MPI to specific policy cases are set out.
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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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