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Abstract. We present a new method for measuring inequality among subgroups of a population together with an application to the measurement of wage and salary inequality between the sexes in Canada and its provinces. In the conventional decomposition intergroup inequality is measured as inequality among subgroup means. Our indices are found by extending the usual procedure for deriving relative and per capita indices from social-evaluation functions. We measure intergroup inequality as the inequality which would be experienced by everyone if each person received his subgroup's 'equally-distributed-equivalent income,' that income which, if equally distributed, would prove socially indifferent to the original subgroup distribution. [ABSTRACT FROM AUTHOR]