Subgroup Decomposition of the Gini Coefficient: A New Solution to an Old Problem

Vesa-Matti Heikkuri & Matthias Schief

Econometrica2026https://doi.org/10.3982/ecta22145article
FT50AJG 4*ABDC A*
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0.37

Abstract

We derive a novel decomposition of the Gini coefficient into within‐ and between‐group inequality terms that sum to the aggregate Gini coefficient. This decomposition is derived from a set of axioms that ensure desirable behavior for the within‐ and between‐group inequality terms. The decomposition of the Gini coefficient is unique given our axioms, easy to compute, and can be interpreted geometrically.

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https://doi.org/https://doi.org/10.3982/ecta22145

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@article{vesa-matti2026,
  title        = {{Subgroup Decomposition of the Gini Coefficient: A New Solution to an Old Problem}},
  author       = {Vesa-Matti Heikkuri & Matthias Schief},
  journal      = {Econometrica},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.3982/ecta22145},
}

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Subgroup Decomposition of the Gini Coefficient: A New Solution to an Old Problem

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0.37

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F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
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