Subgroup Decomposition of the Gini Coefficient: A New Solution to an Old Problem

Read full text
Authors: Vesa-Matti Heikkuri, Matthias Schief
Cited by: 2
References: 23

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