| In the framework of inequality measure decompositions, the paper intro- duces an immediate and straightforward method for the Gini index decomposition, which simplifies the Dagumâ's proposal. Simple expressions for the measurement of both overlapping component and inequal- ity between subpopulations are derived, which allow to correctly evaluate and compare the effects of different factors on total inequality. The simplified Dagumâ's Gini index decomposition is applied to the Italian household income distribution disaggregated by the educational level and geographical area of residence. The results of the empir- ical analysis indicate that the inequality between subpopulations represents the main component of the overall inequality. |
