Theil’s T Statistic Pros Can effectively use group data Allows the researcher to parse inequality into within group and between group components Cons No intuitive motivating picture Cannot directly compare populations with different sizes or group structures Comparatively mathematically complex Next Steps Those interested in a more rigorous examination of inequality metrics with several numerical examples should proceed to The Theoretical Basics of Popular Inequality Measures. Otherwise, proceed to A Nearly Painless Guide to Computing Theil’s T Statistic which emphasizes constructing research
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