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Measuring global well-being inequality: A dimension-by-dimension or multidimensional approach?

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  • Koen Decancq

Abstract

This paper investigates the evolution of global well-being inequality between 1980 and 2010 based on three dimensions: income, health and education. I compare two different approaches to the measurement of global well-being inequality: a dimension-by-dimension approach and a multidimensional one. The first approach analyses the dimensions of well-being separately. The inequality of each of these dimensions shows a remarkably different pattern over time. Unfortunately, this dimension-by-dimension approach is insensitive to the correlation between the dimensions of well-being. The second approach takes this correlation into account and starts from a multidimensional measure of well-being for each country. This well-being measure reflects the implicit value judgments of the revised Human Development Index (HDI). It is shown that multidimensional well-being inequality has decreased over the considered period. However, this result depends crucially on the weighting scheme selected, the aggregation procedure and the transformation of the income dimension. Biographic note: I wrote my doctoral dissertation on ?Essays on the measurement of multidimensional inequality?. Financial support from the IWT-project: ?Flemosi: Tools for ex ante evaluation of socio-economic policies in Flanders? is gratefully acknowledged. JEL Classification: D63, I31, O52.

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Bibliographic Info

Article provided by De Boeck Université in its journal Reflets et perspectives de la vie économique.

Volume (Year): L (2011)
Issue (Month): 4 ()
Pages: 179-196

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Handle: RePEc:cai:rpvedb:rpve_504_0179

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Web page: http://www.cairn.info/revue-reflets-et-perspectives-de-la-vie-economique.htm

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Keywords: global inequality; Gini coefficient; human development index; multidimensional inequality;

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