University of Economics in Bratislava, Dolnozemská cesta 1, 852 35 Bratislava, Slovak Republic
2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty – Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0
The measurement of social inequality is a timely and important topic. Income inequality measure or income distribution measures are used to measure the distribution of income and economic inequality among the participants in a particular economy. Among the most common metrics used to measure inequality are the Lorenz curve and the Gini index (Gini coefficient). Theil’s index is part of a special class of inequality measures known as Generalised Entropy measures. An important property of Theil’s index is the additive decomposability characteristic, which implies that the aggregate inequality measure can be decomposed into inequality within and between any arbitrarily defined population subgroups. This paper aims to investigate the expenditure inequality in Slovakia. Total expenditure inequality is decomposed into the within-groups and between-groups components using Theil’s inequality decomposition technique. The analysis is based on individual data derived from the Household budget survey conducted by the Central Statistical Office in Slovakia.
Generalised entropy measures, inequality, Theil T index, decomposition
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