This paper is a review of recent developments of parametric and non-parametric approaches to decompose inequality by subgroups, income sources, causal factors and other unit characteristics. Different methods of decomposing changes in poverty into growth, redistribution, poverty standard and...

By construction, income inequality measures employed in well-being analysis presume all individual differences to be deleterious to the social good. Yet some differences, for example, those acceptable to all and necessary for optimal resource allocation in producing that well-being, are...

The Gini coefficient is based on the sum of pairwise income differences, which can be decomposed into separate sums for individuals. Differences vis-à-vis poorer people represent an individual’s advantage, while those with respect to richer people constitute deprivation. Weighting deprivation...