groups component for the groups of the second partition. Similarly, overall convergence along
-
,
=
+
component converges naturally to the overall inequality when the number of groups
This procedure can be generalized to any finite multilevel decomposition in subpartitions.
which has the property that
SK
along the subpartition S within any group of the first partition K. The weighting scheme is the
S
+
+
Proposition 1
background image
We shall follow Wodon (1998) and call the new second term of the right-hand side expression,
I
the second partition can be divided into two components: (1) convergence along the first
,
=
S
B
the within-groups component decreases since
,
,...,
B
-
n
K
B
)
,
W
Y
,
the two between-groups of the two partitions. Second, it is non-negative, indicating that the
SK
t
Also, if the inequality index is additively decomposable, then we obtain
,
B
S
=
I
B
t
W
I
inequality along the second partition within the groups of the first partition, plus (3) a within-
I
I
(
I
larger the number of groups, the larger the between-groups component. The between-groups
K
of the first partition K. It is obtained as a weighted sum of the between-groups inequality
,
=
I
,
K
approaches the number of individuals. Note also that it increases exactly the same amount as
0
B
,
K
between-groups inequality along the first partition, plus (2) a second-order between-groups
,
First, the second-order between-groups inequality can be computed as the difference between
,
B
partition plus (2) a second-order convergence of the second partition along the first partition.
+
I
=
,
Y
1
I
W
2
,
,
W
K
,
S
I
B,SK , the second-order between-groups inequality along the subpartition S within the groups
t
SK
0
I
I
I
,
Y
B
Overall inequality can then be divided into the following three components: (1) a first-order
same as the within-groups component weights.
I
W
I
S
,
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