The Gini multi-decomposition and the role of Gini's transvariation: application to partial trade liberalization in the Philippines

Abstract

This article proposes a unified technique of the Gini decomposition. The Gini multi-decomposition is a combination of the income source decomposition and the subgroup decomposition. This technique is applied on reference situation and simulated scenarios for partial trade liberalisation in Philippines, and is extended to different orderings to capture a wide range of between-group indicators. We simulate variations in income source distributions for seven educational groups in the Philippines, in order to measure the inequality variations between a reference situation and a post simulation one with positive externalities due to public expenditures on the private sector productivity.