iTheilL {iIneq}

Individual decomposition of Theil's L Index

Description

The function computes individual components of Theil's L index (or Theil's second measure) and their group-based decompositions. It takes as input an outcome variable, a grouping variable, and an optional sampling weight. It returns a data matrix of three columns containg individual contributions and their between- and within-group components.

Usage

iTheilL(x, g, w=rep(1,length(x)))

Arguments

x

Input continuous variable such as income.

g

A grouping variable containing integers, such gender coded 1 & 2.

w

An optional sampling weight variable.

Value

The function outputs three variables, g.i, g.ikb, and g.ikw.

g.i

This variable gives the individual contribtions to the overall Gini index.

g.ikb

This variable provides for each individual component of the Gini its between-group subcomponent.

g.ikw

This variable provides for each individual component of the Gini its within-group subcomponent. The g.ikb and g.ikw sum up to g.i for each i observation.

References

Tim F. Liao. 2019. "Individual Components of Three Inequality Measures for Analyzing Shapes of Inequality.” Sociological Methods & Research Advance online publication. doi:10.1177/0049124119875961

Examples

data(ChickWeight)
attach(ChickWeight)
iTheilL.result <- iTheilL(weight,Diet)