The use of Theil index in regional unemployment inequalities analysis in Greece

Abstract

Theil index constitutes a statistic function of inequalities measurement. The simplicity in its use in conjunction with its "good" statistical attributes and its ability to decompose into components, ability which determine the structure and the relationship between the  components of the studying characteristic, led the Theil index to be considered a useful "tool" in inequalities measurement. In this article, Theil index is used for unemployment inequalities analysis of the Greek prefectures, during the period 1999-2008. The analysis concerns the calculation of the general Theil index, of the decomposed components, the first between Greek regions and the second within each region and the evaluation of the results. Finally, some conclusions are given.