Decomposing Lorenz and Concentration Curves

14 Pages Posted: 13 Jul 2003

See all articles by John A. Bishop

John A. Bishop

East Carolina University - College of Business

K. Victor Chow

West Virginia University

Lester A. Zeager

East Carolina University - Department of Economics

Abstract

We decompose the Lorenz curve (LC) and its associated concentration curve (CC) by population subgroups. To illustrate these decompositions, we examine changes in earnings inequality among West Germans, East Germans, and foreign guest workers during the recent German unification. We show that East German earnings have become less concentrated in the lower deciles of the overall German earnings distribution, whereas the earnings of West Germans and foreign guest workers have become more concentrated in the lower deciles.

Suggested Citation

Bishop, John A. and Chow, K. Victor and Zeager, Lester, Decomposing Lorenz and Concentration Curves. Available at SSRN: https://ssrn.com/abstract=422986

John A. Bishop (Contact Author)

East Carolina University - College of Business ( email )

Department of Economics
Greenville, NC 27858-4353
United States

K. Victor Chow

West Virginia University ( email )

College of Business and Economics P.O. Box 6025
Morgantown, WV 26506-6025
United States

Lester Zeager

East Carolina University - Department of Economics ( email )

Brewster Building
Greenville, NC 27858
United States
252-328-6408 (Phone)
252-328-6743 (Fax)

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