Wealth Inequality: Theory, Measurement and Decomposition. Davies, J. B., Fortin, N., & Lemieux, T. Canadian Journal of Economics / Revue canadienne d'économique, 50(5):1224–1261, 2017.
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This paper reviews the basic principles of inequality measurement, underlining the advantages and shortcomings of alternative measures from a theoretical standpoint and in the context of the study of the distribution of wealth. Adopting the two most popular measures, the Gini index and the P-shares, the paper documents wealth inequality in Canada using the 1999, 2005 and 2012 Survey of Financial Security (SFS). It carries out several decompositions with covariates, featuring DFL-type reweighting methods and Gini and P-shares RIF regressions. The latter parallel decompositions deepen our understanding of how changes in socio-demographic characteristics, including the compensating role of family formation and human capital, impact wealth inequality.
@article{Daviesetal2017a,
  title = {Wealth Inequality: Theory, Measurement and Decomposition},
  author = {Davies, James B. and Fortin, Nicole and Lemieux, Thomas},
  year = {2017},
  journal = {Canadian Journal of Economics / Revue canadienne d'\'economique},
  volume = {50},
  number = {5},
  pages = {1224--1261},
  doi = {10.1111/caje.12313},
  url = {https://doi.org/10.1111/caje.12313},
  abstract = {This paper reviews the basic principles of inequality measurement, underlining the advantages and shortcomings of alternative measures from a theoretical standpoint and in the context of the study of the distribution of wealth. Adopting the two most popular measures, the Gini index and the P-shares, the paper documents wealth inequality in Canada using the 1999, 2005 and 2012 Survey of Financial Security (SFS). It carries out several decompositions with covariates, featuring DFL-type reweighting methods and Gini and P-shares RIF regressions. The latter parallel decompositions deepen our understanding of how changes in socio-demographic characteristics, including the compensating role of family formation and human capital, impact wealth inequality.},
  keywords = {Determinants of Wealth and Wealth Inequality,Impacts of Wealth Inequality,Methods of Estimation of Wealth Inequality}
}

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