James A. Rising

Virtual Gini Sectors

May 8, 2011 · Leave a Comment

Using agricultural sector and income data, it is possible to calculate estimated Gini coefficients, based on a two-sector model. By comparing these estimates to measured Ginis, one can calculate the theoretical size of a poverty sector, expressed as a portion of the population with 0 income and a wealth sector, expressed as the portion of income earned by only the infinitesimally few.

See the calculations in my Gini Sectors Working Paper, and the calculated upper and lower bounds as a table for various countries.

Categories: Research

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