A further step to understand income inequality in Chile: A decomposition using three-stages nested Theil index decomposition method
The previous literature identifies the high and persistent income inequality of Chile, but the
geography of this inequality is still unexplored. To evaluate this dimension, we propose a
three-stage decomposition of the Theil index at regional, province and county level. Our
decomposition indicates that between 1992 and 2009, 21% of the inequality is attributable to
these spatial scales. Inside of them, the highest inequality exists between counties and
between regions, although they follow different patterns. The inequality between-counties …
geography of this inequality is still unexplored. To evaluate this dimension, we propose a
three-stage decomposition of the Theil index at regional, province and county level. Our
decomposition indicates that between 1992 and 2009, 21% of the inequality is attributable to
these spatial scales. Inside of them, the highest inequality exists between counties and
between regions, although they follow different patterns. The inequality between-counties …
The previous literature identifies the high and persistent income inequality of Chile, but the geography of this inequality is still unexplored. To evaluate this dimension, we propose a three-stage decomposition of the Theil index at regional, province and county level. Our decomposition indicates that between 1992 and 2009, 21% of the inequality is attributable to these spatial scales. Inside of them, the highest inequality exists between counties and between regions, although they follow different patterns. The inequality between-counties fell from 65% to 53%. Oppositely, inequality between regions was 21% in 1992, and grew to 35% in 2009.
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