Decomposition of the Inequality of Income Distribution by Income Types - Application for Romania

TL;DR

This paper analyzes income inequality in Romania using Theil index decomposition on a large dataset, identifying key factors and providing detailed insights into income distribution disparities.

Contribution

It applies Theil index decomposition to a comprehensive Romanian income dataset, offering new insights into the sources of income inequality.

Findings

Key income factors identified for Romania

Decomposition of inequality sources performed

Large-scale data analysis conducted

Abstract

This paper identifies the salient factors that characterize the inequality income distribution for Romania. Data analysis is rigorously carried out using sophisticated techniques borrowed from classical statistics (Theil). Decomposition of the inequalities measured by the Theil index is also performed. This study relies on an exhaustive (11.1 million records for 2014) data-set for total personal gross income of Romanian citizens.