Celidoni M., Gerolimetto M., Salmas L. (2009).
Inequality in Italy: an approach based on Shapley value decomposition. Rivista italiana di Economia, Demografia e Statistica, vol. LXIII, n.3-4, pp. 31-38
The aim of this paper is to analyse inequality in Italy between 1997 and 2004. We decompose the Gini index of inequality using the Shapley value decomposition (Shapley, 1953; Shorrocks, 1982) in order to rank the contribution of different socio – economic variables to income inequality among individuals and time.
Shapley’s value decomposition is a regression based technique that allows to consider different explanatory factors, both economics and demographics. We used data from the Italian Household Budget Survey (ISTAT) in the period 1997 – 2004, previously treated in order to group individuals in cohorts with the aim to understand the dynamic of different factors contribution to inequality, using a Pseudo – Panel approach.