Inequality and The Accounting Period
نویسندگان
چکیده
Income inequality typically declines with the length of time taken into account for measurement. This note derives an exact analytical relationship between the accounting period and inequality as measured by the Gini index. The relationship is similar to the decomposition of the coefficient of variation. The methodology is illustrated with panel data on urban wages from Mexico. It is found that the effect of the accounting period on inequality is sensitive to the properties of the Gini correlations between the periodical incomes. JEL categories: C10, J6, O15
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