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James Galbraith LBJ School UT Austin Levy Institute EPS thanks

Beginner's Guide - Inequality Studies

The purpose of this series of documents is to introduce the reader to inequality studies, with an emphasis on Theil's T Statistic as a measure of wage and income inequality.

Title Description
Measuring Inequality Non-technical introduction briefly describes inequality studies and reviews several leading inequality measures.

A Nearly Painless Guide to Computing Theil's T Statistic Brief example with an emphasis on constructing research questions and using a spreadsheet to conduct analysis

Using Theil's T Statistic: U.S. Income Inequality by County Extended example with an emphasis on data retrieval, data processing, and presentation.

The Theoretical Basics of Popular Inequality Measures This document explores several inequality measures used broadly in the literature, with a special emphasis on how to compute Theil's T statistic.


Technical Guide - Theil's T Statistic

More technical presentations that describe the use of Theil's T statistic to measure inequality in aggregated and hierarchical data sets.

Title Description
The Mechanics and Logic of the Theil Statistic
Includes the origins (Shannon's information measure), and the mathematical properties (decomposition) of the Theil Statistic.

Mechanics to Calculate the Theil and use of Programs and Macros
Includes data discussion and a guide to calculate the between-groups and within-groups component, and the total Theil's T-statistic in excel.


Panoramic Tour

These presentations summarize the major findings from the UTIP research team.

Title Description
Introduction and Overview
Provides an overview of modern theories in inequality, and the major studies in inequality that are prevailing in policy circles. Presents the UTIP-UNIDO data set.

Major Findings from UTIP
Presents results from Russia and China and shows the evolution of regional inequality in the United States from 1969-2000 (at the county level)

Econometric Analysis Using Inequality Measures
Includes a description of the EHII data set, and the European Regional Data set. From the European data set, a theory of European unemployment is developed.

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