• Title/Summary/Keyword: inequality decomposition

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Analysis of Inequality Effects by Income Sources Using the Gini Income Elasticity (GIE를 이용한 소득원천 별 불평등 효과 분석)

  • Seo, BongKyun
    • Korean Journal of Social Welfare Studies
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    • v.41 no.1
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    • pp.65-84
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    • 2010
  • The purpose of Inequality Index Decomposition is to know the cause of overall inequality through decomposing aggregate inequality index into relevant components. Previous studies have mostly focused on the absolute contribution meaning that how much each component possesses out of overall inequality. However it could be more important to know the marginal contribution and inequality effect of each component in order to implement policies reducing overall inequality effectively. For this, we decomposed Gini Coefficient as representative inequality index into income sources or social welfare programs and calculated each Gini Income Elasticity(GIE). Analysis result says that regular employee income and employer(or the self-employed) income, of which GIE are 1.205 and 1.867, are classified as inequality-increasing income source. GIE can be one of good methods to analyse the inequality effect of various income sources and social welfare programs.

Measuring and Decomposing Socioeconomic Inequality in Catastrophic Healthcare Expenditures in Iran

  • Rezaei, Satar;Hajizadeh, Mohammad
    • Journal of Preventive Medicine and Public Health
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    • v.52 no.4
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    • pp.214-223
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    • 2019
  • Objectives: Equity in financial protection against healthcare expenditures is one the primary functions of health systems worldwide. This study aimed to quantify socioeconomic inequality in facing catastrophic healthcare expenditures (CHE) and to identify the main factors contributing to socioeconomic inequality in CHE in Iran. Methods: A total of 37 860 households were drawn from the Households Income and Expenditure Survey, conducted by the Statistical Center of Iran in 2017. The prevalence of CHE was measured using a cut-off of spending at least 40% of the capacity to pay on healthcare services. The concentration curve and concentration index (C) were used to illustrate and measure the extent of socioeconomic inequality in CHE among Iranian households. The C was decomposed to identify the main factors explaining the observed socioeconomic inequality in CHE in Iran. Results: The prevalence of CHE among Iranian households in 2017 was 5.26% (95% confidence interval [CI], 5.04 to 5.49). The value of C was -0.17 (95% CI, -0.19 to -0.13), suggesting that CHE was mainly concentrated among socioeconomically disadvantaged households in Iran. The decomposition analysis highlighted the household wealth index as explaining 71.7% of the concentration of CHE among the poor in Iran. Conclusions: This study revealed that CHE is disproportionately concentrated among poor households in Iran. Health policies to reduce socioeconomic inequality in facing CHE in Iran should focus on socioeconomically disadvantaged households.

An analysis on the inter and intra regional inequalities of rural area facility by a Gini Decomposition method (지니계수분해법을 이용한 농촌마을 시설물의 지역 격차 분석)

  • Park, Mee Jeong;Yun, Do Sic;Chin, Hyun Seung;Shin, Min Ji
    • Journal of Korean Society of Rural Planning
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    • v.20 no.3
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    • pp.11-20
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    • 2014
  • This research aims to identify regional inequitable development through the analysis of facilities distribution pattern. This study describes the concepts underlying the application of the Gini's coefficient and decomposition method to measure the regional inequitable development in Sun-chang County, Jeonbuk Province, Korea. We used the facility data surveyed for three years, from 2010 to 2012 for facility distribution pattern that RDA surveyed. These data have been serviced on the web. The Lorenz Curve presents a graphical view of the inequitable facility distribution and the Gini's Coefficients quantifies the distribution pattern. And furthermore, Gini Decomposition represents intra regional inequalities. These applied techniques can describe how the local development affects other district and change regional inequalities.

Political Economy of Inequality Mitigation : Experiences of Netherlands and Denmark (불평등 완화의 정치경제 : 네덜란드와 덴마크의 경험)

  • Choi, Youseok
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.12
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    • pp.494-502
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    • 2017
  • This study examines how the Netherlands and Denmark lowered the increase in income inequality, at a period in time when income inequality in the world was deepening. This study investigates the level and trend of income inequality in the Netherlands and Denmark compared to those in Korea, the United States, Germany and Sweden. Using the method of the decomposition of changes in income inequality, this study identifies which factors are associated with the changes in inequality in these countries. It also explores which labor market policies mitigated inequality in these two countries. One of the major reasons for the reduction in earned income inequality in the Netherlands is the increased participation of women in economic activity through the increase in voluntary part-time working. In particular, the policies designed to promote equal treatment between full-time and non-regular workers contributed to the active participation of women in part-time work. Using active labor market policies, Denmark improved the proficiency of low skilled and low-wage workers, thereby alleviating the wage gap between high-income and low-income workers. Based on the experiences of the Netherlands and Denmark, this study discusses policy directions to mitigate income inequality in Korea.

A Decomposition of the Gap between the Capital and Non-Capital Regions in the Inequality of Wealth (수도권과 비수도권 간 자산 격차의 요인분해)

  • Jeong, Jun Ho
    • Journal of the Economic Geographical Society of Korea
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    • v.22 no.2
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    • pp.196-213
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    • 2019
  • This paper attempts to analyze the contribution of different socioeconomic factors such as income, age, gender, household composition, education and employment status etc. to the difference between the Capital and Non-Capital Regions in the net wealth inequality of household in Korea. To this end, a two-stage Oaxaca-Blinder type decomposition is employed regarding the regional gap in the inequality of net wealth based upon the Recentered Influence Function of the Gini index for 'the 2018 Household Finance and Living Conditions Survey.' Despite the shortcomings of the survey data on wealth, the findings reveal that regional differences in income, marriage status (divorce), job type (agriculture, forestry and fishery related, and technical and assembly), family type (multi-cultural) variables deepen the regional gap in the net-wealth inequality, but employment status (full-time), job type (administrative and specialized, and service sales), household size variables mitigate the gap, and that regional differences in life cycles play an offsetting role.

Income Inequality of the Aged: Trends and Factor Decomposition (노인 소득의 불평등 추이와 불평등 요인분)

  • Shon, Byong-Don
    • 한국노년학
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    • v.29 no.4
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    • pp.1445-1461
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    • 2009
  • The primary purpose of this study is to find policy implications by examining the trends in income inequality of the Korean aged and factors contributing to these. For analysis, this study used the 2nd, 5th, 7th and 9th wave of 'Korean Labour and Income Panel Study'. The findings are as follows. First, total income inequality of the elderly rose greatly after 1998 and is decreasing after 2001. Secondly, the Gini coefficient decomposition by income sources shows that earned income was the factor most responsible for the income inequality of the elderly. But its influences of the elderly income inequality is gradually decreasing during analysing periods. Third, assets income and public pensions have a great effects on the elderly income inequality. They increases the income inequality of the elderly households. Forth, interfamily transfer income and public assistance income reduces income inequality of the elderly.

A Study of Factor Decomposition of Wage Ineqaulity of Korea, 2006-2015 (임금 불평등 변화의 요인분해: 2006-2015년)

  • Jeong, Jun-Ho;Cheon, Byung-You;Chang, Jiyeun
    • Korean Journal of Labor Studies
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    • v.23 no.2
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    • pp.47-77
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    • 2017
  • This paper analyzes the changes in wage inequality and its contributing factors since the mid-2000s. Although trends vary by data and wage indices, the Gini coefficient of the total wage of all workers shows an increasing trend due to the part-time increase of less than 35 hours per week, while the wage Gini coefficient of hourly wages and the total wage Gini coefficient of full-time workers showed a declining trend. Part-time increases have increased inequality based on total wages, but part-time hourly wage increases can be considered to have reduced hourly wage inequality. Therefore, as a result of decomposing the factor of Gini coefficient reduction only for full-time workers, factors that contributed absolutely to inequality reduction were variables such as job tenure, career, and occupation, and employment type variable has little effects, and the establishment size variable deepens inequality. The variables such as industry, age, and education did not contribute significantly to the inequality change. This is attributed to the decline in wage premiums for job tenure and management and professional jobs and the increase in wage premiums for large-scale businesses.

An Analysis on Income-related Health Inequality of the Aged Applied to EQ-5D (소득계층에 따른 노인들의 건강 불평등 측정: EQ-5D 척도를 중심으로)

  • Kim, Jun Gu
    • 한국노년학
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    • v.32 no.3
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    • pp.759-776
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    • 2012
  • This study analysed the income-related health inequality of the aged in Korea applied to EQ-5D. Two decompositions were used in analysis. One was the decomposition of income-related health inequality into six different dimensions of EQ-5D, and the other was to decompose it by sub-group such as sex, region, existence of spouse. The results are summarized as follows. First, the health concentration index(CI) of the aged was .0254, which meant that there were pro-rich inequality in elderly people's health levels. The same patterns were also seen in the analysis of different dimensions of EQ-5D such as mobility, self-care, usual activities, pain/discomfort, and anxiety/depression. Second, mobility accounted for 35.8% of total EQ-5D score, most contributing to CI of the dimensions of EQ-5D. The CIs by the dimensions ranged from .0091 for mobility to .0013 for self-care. Third, The decompositions by sub-groups showed that the contributions of sex, region, and existence of spouse to health inequality was similar to each other, all of three sub-groups accounted for 10 % of inequality respectively. Fourth, the inequality within group was higher in female group, rural area, and the aged without spouse. The average health level of these groups was lower than that of the other ones, too. These facts indicated that old women, the aged without spouse, and the elderly in rural area were the most vulnerable groups in health problems. Therefore, it is necessary to pay more attention to health problems of these groups in the policy making of health security and social welfare services.

Analysis of Forestry Household Income Inequality using Gini Coefficient Decomposition by Income Sources (소득원천별 지니계수 분해법을 이용한 임가의 소득불평등 분석)

  • Kim, Eui-Gyeong;Kim, Bo-Kyeong;Kim, Dong-Hyun
    • Journal of Korean Society of Forest Science
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    • v.108 no.3
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    • pp.392-404
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    • 2019
  • The purpose of this study was to identify the impact of various income sources on income inequality of forestry households. Data from the Forestry Household Economy Survey from 2013-2016 were analyzed using the Gini coefficient decomposition method via income source. In particular, the income inequality analysis of forestry households was broken down into separate analyses based on group, i.e., the whole of forestry households and the five income quintile classes. The results of the analyses showed that income inequality of forestry households is primarily affected by forestry and nonforestry incomes and income quintile class. Moreover, income inequality of the highest income quintile class was largely affected by forestry income compared with other sources of income, whereas that of other income quintile classes was largely affected by nonforestry income. Therefore, in order to reduce income inequality in forestry households, it is necessary to increase the proportion of forestry income in the lower four quintile classes. Given that the income of the lowest quintile class is negative, it is necessary to devise ways to improve the proportion and quantity of forestry income. At the same time, as forestry income increases, a policy alternative is also required to improve inequality in forestry income.

CONVERGENCE ANALYSIS ON GIBOU-MIN METHOD FOR THE SCALAR FIELD IN HODGE-HELMHOLTZ DECOMPOSITION

  • Min, Chohong;Yoon, Gangjoon
    • Journal of the Korean Society for Industrial and Applied Mathematics
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    • v.18 no.4
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    • pp.305-316
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    • 2014
  • The Hodge-Helmholtz decomposition splits a vector field into the unique sum of a divergence-free vector field (solenoidal part) and a gradient field (irrotational part). In a bounded domain, a boundary condition needs to be supplied to the decomposition. The decomposition with the non-penetration boundary condition is equivalent to solving the Poisson equation with the Neumann boundary condition. The Gibou-Min method is an application of the Poisson solver by Purvis and Burkhalter to the decomposition. Using the $L^2$-orthogonality between the error vector and the consistency, the convergence for approximating the divergence-free vector field was recently proved to be $O(h^{1.5})$ with step size h. In this work, we analyze the convergence of the irrotattional in the decomposition. To the end, we introduce a discrete version of the Poincare inequality, which leads to a proof of the O(h) convergence for the scalar variable of the gradient field in a domain with general intersection property.