The Sensitivity of Income Inequality to Choice of Equivalence Scales
AbstractTo account for the fact that a household's needs depend on its size and composition most studies on income inequality adjust the observed household incomes by equivalence scales. However, since the rationale for choosing a specific scale is rather vague the importance of testing the sensitivity of income inequality estimates to choice of equivalence scales has long been acknowledged. The sensitivity studies in the literature are restricted to equivalence scales that do not depend on the income level of the reference household which means that the effect of a rise in the household size on the scale rate does not depend on whether the household is poor or rich. By using Norwegian micro-data it is shown that the introduction of an income-dependent scale produces results that are in conflict with the widespread view of robustness of results to choice of equivalence scales. Copyright 1998 by The International Association for Research in Income and Wealth.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.
Volume (Year): 44 (1998)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6586
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bönke, Timm & Schröder, Carsten, 2007.
"Equivalence scales reconsidered: an empirical investigation,"
Economics Working Papers
2007,31, Christian-Albrechts-University of Kiel, Department of Economics.
- Bönke, Timm & Schröder, Carsten, 2007. "Equivalence scales reconsidered an empirical investigation," Discussion Papers 2007/21, Free University Berlin, School of Business & Economics.
- Timm Bönke & Carsten Schröder, 2008. "Equivalence scales reconsidered – an empirical investigation," Working Papers 102, ECINEQ, Society for the Study of Economic Inequality.
- Joachim R. Frick & Markus M. Grabka, 2000. "Personelle Einkommensverteilung und der Einfluß von Imputed Rent," Discussion Papers of DIW Berlin 225, DIW Berlin, German Institute for Economic Research.
- Whitehouse, Edward, 2000.
"How poor are the old? a survey of evidence from 44 countries,"
Social Protection Discussion Papers
23141, The World Bank.
- Whitehouse, Edward, 2000. "How Poor are the Old? A Survey of Evidence from 44 Countries," MPRA Paper 14177, University Library of Munich, Germany.
- Timm Bönke & Carsten Schröder, 2010.
"Country Inequality Rankings and Conversion Schemes,"
Discussion Papers of DIW Berlin
1068, DIW Berlin, German Institute for Economic Research.
- Schröder, Carsten & Bönke, Timm, 2012. "Country inequality rankings and conversion schemes," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(28), pages 1-43.
- Schröder, Carsten & Bönke, Timm, 2012. "Country inequality rankings and conversion schemes," Economics Discussion Papers 2012-7, Kiel Institute for the World Economy.
- Joachim R. Frick & Markus M. Grabka, 2001.
"Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 221(3), pages 285-308.
- Frick, Joachim R. & Grabka, Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 285-308.
- Brian Nolan & Christopher T. Whelan, 2010. "Using non-monetary deprivation indicators to analyze poverty and social exclusion: Lessons from Europe?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 305-325.
- Bente Halvorsen, 2009. "Conflicting Interests in Environmental Policy-making?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(2), pages 287-305, October.
- Johannes Schwarze, 2000. "Using Panel Data on Income Satisfaction to Estimate the Equivalence Scale Elasticity," Discussion Papers of DIW Berlin 227, DIW Berlin, German Institute for Economic Research.
- Disney, Richard & Whitehouse, Edward, 2001. "Cross-country comparisons of pensioners’ incomes," MPRA Paper 16345, University Library of Munich, Germany.
- Jürgen Faik, 2011.
"A new framework of measuring inequality: Variable equivalence scales and group-specific well-being limits. Sensitivity findings for German personal income distribution 1995-2009,"
219, ECINEQ, Society for the Study of Economic Inequality.
- Jürgen Faik, 2011. "A New Framework of Measuring Inequality: Variable Equivalence Scales and Group-Specific Well-Being Limits ; Sensitivity Findings for German Personal Income Distribution 1995-2009," SOEPpapers on Multidisciplinary Panel Data Research 401, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Hillringhaus, Tilman & Peichl, Andreas, 2010. "Die Messung von Armut unter Berücksichtigung regional divergierender Lebenshaltungskosten und öffentlicher Leistungen," IZA Discussion Papers 5344, Institute for the Study of Labor (IZA).
- Rolf Aaberge & Audun Langørgen, 2006.
"Measuring The Benefits From Public Services: The Effects Of Local Government Spending On The Distribution Of Income In Norway,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 52(1), pages 61-83, 03.
- Rolf Aaberge & Audun Langørgen, 2003. "Measuring the Benefits from Public Services The Effects of Local Government Spending on the Distribution of Income in Norway," Discussion Papers 339, Research Department of Statistics Norway.
- Erling Røed Larsen, 2002. "Consumption Inequality in Norway in the 80s and 90s," Discussion Papers 325, Research Department of Statistics Norway.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.