Title: Constructing Long, Dense Time Series of Inequality Using the Theil Index
Abstract:Wage and earnings data by industrial sectors are readily available for many countries over long time frames. This chapter explores the application of the between-group component of the Theil index to ...Wage and earnings data by industrial sectors are readily available for many countries over long time frames. This chapter explores the application of the between-group component of the Theil index to data on wages, earnings, and employment by industrial classification in order to measure the evolution of wage or earnings inequality through time. We provide formal criteria under which such a between-group Theil statistic can reasonably be assumed to give results that also track the (unobserved) evolution of inequality within industries. While the evolution of inequality in manufacturing earnings cannot be taken as indicating per se the larger movements of inequality in household incomes, including those outside the manufacturing sector, we argue on theoretical grounds that the two will rarely move in opposite directions. We conclude with an empirical application to the case of Brazil.Read More
Publication Year: 2001
Publication Date: 2001-04-09
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
Cited By Count: 4
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot