The figure below presents the results of a decomposition analysis by income source, separating the different components that contribute positively or negatively to inequality. It examines the relative contributions of gender-specific income components to income inequality using a decomposition by income source (following Lerman and Yitzhaki, 1985). The Gini coefficient for total income, G, can be represented as G = Ylk=i Gk = X Sk GkRk where Sk is the share of source k in total income, Gk is the Gini coefficient corresponding to the distribution of income from source k, and Rkis the correlation of income from source k with the distribution of total income. The relative contribution of source k to total income inequality can then be calculated as Ck = sHG.kRi< This approach relies on the assumption that flat-rate distributed benefits make a neutral or “zero” contribution to inequality, and thus do not account for a decreasing marginal benefit for transfers along the income distribution.