In this video i introduce the ideas of the lorenz curve and gini coefficient for measuring income inequality. My question is, how i can calculate gini coefficient in stata for every. In case a is a very large area and b is a small area, the gini coefficient is large. Stata module to perform gini decomposition by income source. Stata provides ado files that will calculate the gini coefficient as well as several other inequality indices. The gini coefficient equals the area between the 45 degree line in a cartesian coordinate system an the lorenz curvewhich represents the distribution of wealth in a. She asked if i know a stata command that tests the significance between the. The command is available online for installation in netaware stata. Gini index world bank estimate australia world bank, development research group. To explore estimating gini coefficients from this type of binned data i used data from the wonderful laknermilanovic world panel income. It indicates there is huge incomewealth inequality. I had seen the command inequal but this doesnt have a by option. Heres r code to download the data in stata format and grab the.
Or is there any other easy way to compute only the gini coefficients in stata with such by options. Measuring inequality for instance, by the gini index of concentration fro. I need to calculate the gini coefficient of net wealth for each country in the hfcs database. The onus is on the users to determine which of the many estimates provided. A stata package for measuring inequality from incomplete. I am writing because calculating it in excel takes to much time, especially when i want to modify the wages later. For the love of physics walter lewin may 16, 2011 duration. Higher the value of an index, more dispersed is the data. If you are calculating gini coefficients for a large number of subsets. One option is to use the command ineqdeco after install it in your stata. Does anyone have idea how to compute gini coefficient for groups. Groupvar is a categorical variable not string who determines the subgroups in which the population will be divided. Graphical representation of the gini index lorenz curve. Gini coefficient and lorenz curve explained towards data.
Generally, there are several ways to calculate the gini index. The formula for the gini coefficient can be calculated. So for example, i need all the gini coefficients for team cleveland in the year 2001, 2002, 2003. Alternatively, the gini coefficient can also be calculated as the half of the relative mean absolute difference. I also describe some difficulties with using it as a way to track income inequality. Hence, the gini coefficient computes the difference between all available income pairs in the data and calculates the total of all absolute differences. Data are based on primary household survey data obtained from government statistical. Generalized gini and concentration coefficients with factor. The parmest package can also be downloaded from ssc, using the. How to use calculus to calculate gini coefficient quora. This adofile provides the gini coefficient for the whole population, for each subgroup specified in groupvar, and its pyatts 1976 decomposition in between, overlap and withingroup inequality. Stata module to compute gini index with within and betweengroup inequality decomposition.
Stata module to compute gini index with within and. The gini coefficient is one of the most popular measure of inequality. Sampling weight is optional, and can be included as an aweight. Calculating the gini coefficient for inequality directly of mean income by decile produces a slightly biased downwards estimate. My question is, how i can calculate gini coefficient in stata for every team in year x. Gini index world bank estimate mexico world bank, development research group. I couldnt find a solution that works with both multiple imputed data and survey weighted data. In addition to the main outcome variable, the bygroup is typically required. I mean, without decomposing into within and between groups, i want to estimate only the gini with the by option. Pdf decomposition of the gini coefficient using stata.
Lorenz curve, gini coefficient gini index duration. Actually, what i downloaded was the ineqdeco package returned as the. A formula of ginis concentration ratio and its applications to life tables. Income inequality in the philippines, as measured by the gini coefficient. Roger aliagadiaz and silvia montoya additional contact information silvia montoya. Calculating gini coefficients statalist the stata forum.
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