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Generalised Income Inequality Index

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  • Ziqing Dong
  • Yves Tille
  • Giovanni Maria Giorgi
  • Alessio Guandalini

Abstract

This paper proposes a deep generalisation for income inequality indices. A generalised income inequality index that depends on two parameters and that involves a large set of income inequality indices in the same framework is proposed. The two parameters control the sensitivity of the generalised index to different levels of the income distribution. A thorough investigation of the generalised index paves the way for understanding the influence of the low, middle and high incomes on various income inequality indices and thereby facilitates the choice of multiple indices simultaneously for a better analysis of inequality as advocated by several recent studies. Moreover, two methods for estimating the generalised index in the case of finite populations are shown. A new method for estimating the inequality indices is proposed.

Suggested Citation

  • Ziqing Dong & Yves Tille & Giovanni Maria Giorgi & Alessio Guandalini, 2024. "Generalised Income Inequality Index," International Statistical Review, International Statistical Institute, vol. 92(1), pages 87-105, April.
    • Handle: RePEc:bla:istatr:v:92:y:2024:i:1:p:87-105
    DOI: 10.1111/insr.12551
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