In this study, we classify the income gap into the total income gap and the inter-group income gap depending on the subjects of study. Measurement and decomposition methods are discussed at three levels: income inequ...In this study, we classify the income gap into the total income gap and the inter-group income gap depending on the subjects of study. Measurement and decomposition methods are discussed at three levels: income inequality, polarization, and the inter-group income gap. While income inequality focuses on description of the overall income gap, polarization aims to examine the phenomenon of the "clustering effect" in income distribution, for which the measurement indexes used can be broadly divided into bi-polarization and multi-polarization indexes. The Shapley decomposition method and decomposition of the distribution of inter- group income differences are cutting edge techniques for the decomposition of the income gap. We also stress the applicability and relevance of income gap measurement indexes and decomposition methods, to facilitate selection of the most appropriate methods for more accurate detection of the causes of the income gap.展开更多
基金The authors acknowledge the support of the National Social Science Foundation of China (project number: 10AZD003 09BJL019), the National Natural Science Foundation (project number: 70933001) and the Key Project in Philosophy and Social Sciences Research of the Ministry of Education (project number: 06JZD0014).
文摘In this study, we classify the income gap into the total income gap and the inter-group income gap depending on the subjects of study. Measurement and decomposition methods are discussed at three levels: income inequality, polarization, and the inter-group income gap. While income inequality focuses on description of the overall income gap, polarization aims to examine the phenomenon of the "clustering effect" in income distribution, for which the measurement indexes used can be broadly divided into bi-polarization and multi-polarization indexes. The Shapley decomposition method and decomposition of the distribution of inter- group income differences are cutting edge techniques for the decomposition of the income gap. We also stress the applicability and relevance of income gap measurement indexes and decomposition methods, to facilitate selection of the most appropriate methods for more accurate detection of the causes of the income gap.