descogini -- Gini decomposition by income source
descogini varlist [if] [in] [, d(#) bar]
This command decomposes the Gini coefficient by income source using the approach described in Lerman and Yitzhaki (1985) and Stark, Taylor and Yitzhaki (1986), which allows calculation of the impact that a marginal change in a particular income source will have on inequality.
d(#) specifies the number of decimal places to be reported in the table of results. The default is d(4).
bar specifies that a vertical bar should be included before each output field. Such output can be pasted into Microsoft Word as text and converted into a table using the vertical bars as separators.
The first variable in varlist should always be the variable that captures total income. The order in which the income sources are included in the syntax does not matter.
The last column of the table of results (% Change) refers to the impact that a 1% change in the respective income source will have on inequality. Four additional elements are included in the table of results: the share of each income source in total income (Sk), the source Gini (Gk), the Gini correlation of income from source k with the distribution of total income (Rk), and the share of each income source in total inequality. Bootstrapped standard errors of the estimated impacts on inequality can easily be obtained using this command (see examples below).
. descogini totinc farminc ofarminc transinc
. descogini totinc farminc ofarminc transinc, d(5)
To obtain bootstrapped standard errors and confidence intervals:
. bootstrap "descogini totinc farminc ofarminc transinc" _b
. bootstrap "descogini totinc farminc ofarminc transinc" _b Gini=gtotal
Alejandro Lopez-Feldman Escuela de Economia Universidad de Guanajuato Email: firstname.lastname@example.org
descogini is not an official Stata command. It is a free contribution to the research community, like a paper. Please cite the Lopez-Feldman (2006) paper.
Lerman, R.I. and S. Yitzhaki. 1985. Income inequality effects by income source: A new approach and applications to the United States. Review of Economics and Statistics 67: 151-156.
Lopez-Feldman, A. 2006. Decomposing inequality and obtaining marginal effects. The Stata Journal 6(1): 106-111.
Stark, O., J.E. Taylor and S. Yitzhaki. 1986. Remittances and inequality. Economic Journal 96: 722-740.
Online: inequal (if installed), ineqdeco (if installed), ginidesc (if installed), ineqfac (if installed)