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  • Different Gini coefficients for same data depending on technique and command.

    I've been calculating the Gini coefficients for sets of countries. Originally I decomposed the Gini based on income sources (employment and self employment):
    -descogini income employ self-
    This gave me the contribution of each source, as well as the overall or total income Gini. After creating the group variable Sector, I also decomposed inequality on a sector basis using:
    - ineqdeco income, by(Sector) -
    This gave the Theil and other breakdowns I was looking for, but it also gave me the overall Gini for the dataset. Finally I just looked at income only:
    -ineqdeco income-
    This gave the Gini for the set as well. While they are similar, the results differ slightly in each case. Which one is correct?

    I also looked at the Gini for each sector. First I acted as if sectors were an income sources as I didn't know the correct code, and used:
    -descogini Income a f g h ...ru-
    where a ...ru are NACE sector codes. This gave me the Gini/Gk for each sector. However the results here differ considerably to the sector breakdown using - ineqdeco income, by(Sector) -
    The sector breakdown using - ineqdeco income, by(Sector) - does return the same result as when I use this command to look at sector inequalities individually using - ineqdeco income a - or -ineqdeco f - etc.
    Again which way is correct? I would appreciate any suggestions.
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