Arbeitspapier
Measuring Income Inequality under Restricted Interpersonal Comparability
The standard approach in empirical analyses of income distributions is to estimate income inequality in a country under the assumption of full interpersonal comparability of income. To be meaningful, this method requires that prices and qualities of goods as well as consumption habits are uniform across individuals in different regions of the country. In this paper, we pursue two alternative approaches to measure inequality under restricted interpersonal comparability of income. First, we estimate regional price indices, transform observed incomes into real incomes in an attempt to incorporate relevant non-income heterogeneity, and then aggregate across individuals. Second, we use the observed income data and account for non-income heterogeneity at the aggregation stage. Results based on a Norwegian register household panel data set indicates that both levels and trends in overall inequality as well as the inequality contributions of various income factors are robust to whether the income inequality analysis is based on the standard approach or the methods developed to cope with comparability problems within a country.
- Sprache
-
Englisch
- Erschienen in
-
Series: Discussion Papers ; No. 498
- Klassifikation
-
Wirtschaft
Personal Income, Wealth, and Their Distributions
Factor Income Distribution
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Welfare, Well-Being, and Poverty: General
- Thema
-
Income inequality
restricted interpersonal comparability
heterogeneity
real income comparison
regional price index
decomposition of inequality by income factors
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Mogstad, Magne
- Ereignis
-
Veröffentlichung
- (wer)
-
Statistics Norway, Research Department
- (wo)
-
Oslo
- (wann)
-
2007
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Mogstad, Magne
- Statistics Norway, Research Department
Entstanden
- 2007
Ähnliche Objekte (12)
Measuring long-term inequality of opportunity
Measuring long-term inequality of opportunity
Are lone mothers responsive to policy changes? Evidence from a workfare reform in a generous welfare state
Earnings, disposable income, and consumption of allowed and rejected disability insurance applicants
How Linear Models Can Mask Non-Linear Causal Relationships. An Application to Family Size and Children's Education
Robust inequality comparisons
Is universal child care leveling the playing field?
Robust Inequality Comparisons
How financial incentives induce disability insurance recipients to return to work
Money for nothing? Universal child care and maternal employment
Instrumental variables estimation with partially missing instruments
On the Definition and Measurement of Chronic Poverty
Measuring long-term inequality of opportunity
Measuring long-term inequality of opportunity
Are lone mothers responsive to policy changes? Evidence from a workfare reform in a generous welfare state
Earnings, disposable income, and consumption of allowed and rejected disability insurance applicants
How Linear Models Can Mask Non-Linear Causal Relationships. An Application to Family Size and Children's Education
Robust inequality comparisons
Is universal child care leveling the playing field?
Robust Inequality Comparisons
How financial incentives induce disability insurance recipients to return to work
Money for nothing? Universal child care and maternal employment
Instrumental variables estimation with partially missing instruments
On the Definition and Measurement of Chronic Poverty
Measuring long-term inequality of opportunity
Measuring long-term inequality of opportunity
Are lone mothers responsive to policy changes? Evidence from a workfare reform in a generous welfare state
Earnings, disposable income, and consumption of allowed and rejected disability insurance applicants
How Linear Models Can Mask Non-Linear Causal Relationships. An Application to Family Size and Children's Education
Robust inequality comparisons
Is universal child care leveling the playing field?
Robust Inequality Comparisons
How financial incentives induce disability insurance recipients to return to work
Money for nothing? Universal child care and maternal employment
Instrumental variables estimation with partially missing instruments