New method accurately measures income inequality in small areas.
Small area estimation is important for getting statistics about small regions. This article suggests a new way to estimate inequality measures like the Theil index and Gini coefficient for small areas. They use a robust method that can handle outliers in income data. The researchers applied this method to income data in Tuscany to estimate inequality measures for different age groups. They found that this new method works well and can give accurate estimates for small areas.