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A Strong Factor for the Reduction of Inequality

Diego Jos? Arturo Sa
Year: 2006 Pages: 11
Keywords: econophysics, thermodynamics, probability distributions, Gini
The inequality is computed through the so-called Gini index. The population is assumed to have the variable of interest distributed according to the Gamma probability distribution. The results show that the Gini index is reduced when the population is grouped. The number of individuals in the groups is the relevant parameter, but this number does not need to be very large in order to obtain a very substantial reduction of inequality.