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Decomposition of Income Inequality in Rural Bangladesh

Published online by Cambridge University Press:  28 November 2008

Pk. Md. Motiur Rahman
Affiliation:
Institute of Statistical Research and Training University of Dhaka, Bangladesh
S. Huda
Affiliation:
Statistics Department, King Saud University Riyadh, Saudi Arabia

Extract

Until the recent past, the analysis of economic inequality in a country was essentially a macro level exercise. Currently, it has been well recognized that macro level inequality measure is inadequate for assessing a country's economic development and its distributional pattern. To have a clear understanding of the nature, structure and factors responsible for inequality decompositions of aggregate inequality into sectors, sources and determinants of income are essential. The concept of decompositions of inequality signifies that if the population of income recipients is partitioned into a number of subpopulations, the total inequality of the population can be expressed as sum of the inequality within the sub-populations and of the inequality between them.

Type
Articles
Copyright
Copyright © Cambridge University Press 1992

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