Subgroup Decomposition of the Gini Coefficient: A New Solution to an Old Problem
Abstract
We derive a novel decomposition of the Gini coefficient into within‐ and between‐group inequality terms that sum to the aggregate Gini coefficient. This decomposition is derived from a set of axioms that ensure desirable behavior for the within‐ and between‐group inequality terms. The decomposition of the Gini coefficient is unique given our axioms, easy to compute, and can be interpreted geometrically.
Fields of Study & Subjects
Income
Poverty
and Inequality
Mathematical Inequalities and Applications
Game Theory and Voting Systems
Publication details
- Journal / source
- Econometrica
- Publisher
- The Econometric Society
- Volume
- 94
- Issue
- 1
- Pages
- 169–192
- Publication date
- 1 January 2026
- Language
- EN