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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...
Persistent link: https://www.econbiz.de/10009680434
We decompose the redistributive effect of direct taxes into vertical, horizontal, and reranking components applying the methods of Urban and Lambert (Public Finance Review, 2008). In the first such application to the UK, and using yearly data covering 1977-2020, we find that redistributive...
Persistent link: https://www.econbiz.de/10014423792
We study how measures of socioeconomic health inequality inform about welfare inequality. We argue that transfers of either income or health from a better off to a worse off individual should reduce welfare inequality. Lacking an objective measure of individual welfare, we suggest that such a...
Persistent link: https://www.econbiz.de/10015057694
In this paper, we propose to use the so-called Sen-Shorrocks poverty index (Shorrocks, 1995) to measure …, the most common case in the literature, and introduce a rank-dependent multidimensional poverty index for multiple binary … important for poverty analysis. An empirical illustration based on deprivation data from four Central American countries …
Persistent link: https://www.econbiz.de/10012601360
high and stable growth and a decline in the poverty rate. Although rising, however, inequality is low in Ghana compared …
Persistent link: https://www.econbiz.de/10014314684
in poverty and income inequality, up to 2010 or 2011 in most countries. We provide measures of the levels and trends in … each of these areas, as well as an integrated discussion of empirical choices made in the measurement of poverty, overall …
Persistent link: https://www.econbiz.de/10014025343
Index of refraction is found to be a good measure of economic inequality within the Lorenz curve framework. It has origin in geometrical optics, where it measures bending of a ray of light passing from one transparent medium into another. As light refracts according to characteristics of...
Persistent link: https://www.econbiz.de/10011525674
This paper points to flaws in Gini decompositions by income sources and population subgroups and to common pitfalls in the interpretation of decomposition results, focusing on methods within the framework of Rao (1969). We argue that within this framework Gini elasticities may provide the only...
Persistent link: https://www.econbiz.de/10010414242
The purpose of this research is to introduce a new approach to the decomposition of the Gini ratio into three components, supporting them with economic and statistical rigorous interpretations. The three components are: (i) the Gini inequality within subpopulations; (ii) the net contribution of...
Persistent link: https://www.econbiz.de/10014052125
A key aspect defining the contemporary income distribution is the (increasing) share the top holds compared to the rest. This paper shows that income concentration increases towards the very top of the distribution, while the shares the middle- and upper-middle-income groups hold remain stable...
Persistent link: https://www.econbiz.de/10011628596