Communications in Mathematics |

The scope of this note is a self-contained presentation of a mathematical method that enables us to give an absolute upper bound for the difference of the Gini coefficients |G(σ1, . . ., σn) − G(γ1, . . . , γn)| , where (γ1, . . . , γn) represents the vector of the gross wages and (σ1, . . . , σn) represents the vector of the corresponding super-gross wages that is used in the Czech Republic for calculating the net wage. Since (as of June 2019) σi = 100 ⎡ 1.34 γi /100⎤, the study of the above difference seems to be somewhat inaccessible for many economists. However, our estimate based on the presented technique implies that the introduction of the super-gross wage concept does not essentially affect the value of the Gini coefficient as sometimes expected.

Source: HAL:hal-03664973v1

Volume: Volume 27 (2019), Issue 2

Published on: December 31, 2019

Imported on: May 11, 2022

Keywords: General Mathematics,[MATH]Mathematics [math]

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