The ‘natural’ bidimensional decomposition of inequality indices: evaluating factor contributions to households welfare inequality in Cameroon, 1996–2001

Abstract

This article proposes a simultaneous (income source and population subgroup) decomposition of inequality indices. The starting point is the Shorrocks' natural income source decomposition. The approach adopted leads to a factor contributions formula, which is independent of the inequality measure chosen. This method is applied to decompose and analyse Cameroonian households' inequality during the 1996–2001 period.