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Income distribution within groups, among groups, and overall : a technique of analysis (English)

The purpose of this paper is to describe a technique and an associated computer algorithm for deriving the overall distribution of income given data on the distribution of income between and within aggregate groups in the economy. The technique can be used to map from the distribution of income by major factors of production such as labor, capital, and land into the overall size distribution. It can also be used with other group definitions such as by regions, sector of production, or socioeconomic categories. The approach is clearly useful in economic models, and should be useful in the preparation of income distribution data for a country. It provides a framework within which one can integrate income distribution data from a number of different sources in order to generate the overall distribution. Using this technique, one can divide the economy into any convenient complete set of disparate groups and then use data on each separate group to determine its within-group distribution. It can provide a method for reconciling income distribution data from a number of different sources.

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Citation

Robinson, Sherman

Income distribution within groups, among groups, and overall : a technique of analysis (English). Development Research Department discussion paper ; no. DRD 26 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/562031468046503735/Income-distribution-within-groups-among-groups-and-overall-a-technique-of-analysis