We demonstrate that a rank-preserving transfer from a richer individual to a poorer individual can exacerbate income inequality (when inequality is measured by the Gini coefficient). This happens when individuals' preferences depend negatively not only on work time (effort) but also on low...

This article analyzes the determinants of market income distribution and governmental redistribution. The dependent variables are LIS data on market income inequality (measured by the Gini index) for households with a head aged 25 to 59 and the percent reduction in the Gini index by taxes and...

The underlying idea behind the construction of indices of economic inequality is based on measuring deviations of various portions of low incomes from certain references or benchmarks, which could be point measures like the population mean or median, or curves like the hypotenuse of the right...