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10


Stata Technical Bulletin


STB-48


Options

bygroup ggroppaar) requests inequality decompositions by population subgroup, with subgroup membership summarized by
groupvar.

w requests calculation of equally-distributed-equivalent incomes and welfare indices in addition to the inequality index calculations.
summ requests presentation of summary, detail output for
varname.

Saved results

S_9010, S_7525              Percentile ratios p90/p10, p75/p25

S-iml, S_i0, S_il, S_i2 GE(a),fora=-1,0,1,2

S_ahalf, S_il, S_a2 A(e), for e = 0.5, 1, 2

Example

Standard output from ineqdeco with only the welfare index option chosen is as follows.

. ineqdeco eybhc [fw=wgt], w

Warning: eybhc has 20 values < 0. Not used in calculations

Percentile ratios for distribution of eybhc: all valid obs.

p90∕pl0 p90∕p50 pl0∕p50 p75∕p25 p75∕p50 p25∕p50


4.336    2.063    0.476    2.249    1.474    0.655

Generalized Entropy indices GE(a), where a = income difference
sensitivity parameter, and Gini coefficient
----------+-----------------------------------------------------------

All obs I GE(-1) GE(O) GE(I) GE(2)         Gini

----------+-----------------------------------------------------------

I    3.66972     0.19386     0.20530     0.36167     0.33263

----------+-----------------------------------------------------------

Atkinson indices, A(e), where e > 0 is the inequality aversion parameter
----------+-----------------------------------

All obs I A(0.5)         A(I)         A(2)

----------+-----------------------------------

I    0.09294     0.17622     0.88009

----------+-----------------------------------

Equally-distributed-equivalent incomes, Yede(e)
----------+-----------------------------------
All obs I Yede(0.5) Yede(I) Yede(2)
----------+-----------------------------------

I 212.04836   192.57941    28.03261

----------+-----------------------------------

Social welfare indices, W(e), and Sen's welfare index
----------+-----------------------------------------------------------

All obs I        W(0.5)           W(I)           W(2) mean*(l-Gini)

----------+-----------------------------------------------------------

I      29.12376        5.26051       -0.03567      156.01453

----------+-----------------------------------------------------------

We can examine differences in inequality by tenure group using the command

. ineqdeco eybhc [fw=wgt], by(tenure)

Warning: eybhc has 20 values < 0. Not used in calculations

Percentile ratios for distribution of eybhc: all valid obs.

p90∕pl0 p90∕p50 pl0∕p50 p75∕p25 p75∕p50 p25∕p50


4.336    2.063    0.476    2.249    1.474    0.655

Generalized Entropy indices GE(a), where a = income difference
sensitivity parameter, and Gini coefficient
----------+-----------------------------------------------------------

All obs I GE(-1) GE(O) GE(I) GE(2)         Gini

----------+-----------------------------------------------------------

I    3.66972     0.19386     0.20530     0.36167     0.33263

----------+-----------------------------------------------------------



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