Measuring unfair (in)equality
AbstractThis paper shows one way of generalizing the standard framework of inequality measurement to allow for a distinction between fair and unfair inequalities. We introduce the unfairness Lorenz curve and the unfairness Gini, which are generalizations of the standard versions of the Lorenz curve and the Gini. With this more general framework in place, we study the implications of responsibility-sensitive theories of justice for the evaluation of the income distribution in Norway from 1986 to 2005. We find that both the pre-tax and the post-tax income distributions have become less fair in Norway, even though the standard Gini for the pre-tax income distribution has decreased in the same period. Two trends explain this development: the increase in income share of the top percentile and the change in the situation of females in the labor market. The concentration of income at the top of the distribution contributes both to increased unfairness and increased inequality, whereas the increase in females' working hours and level of education primarily contributes to a reduction in inequality. Thus, the latter effect dominates for the standard Gini and the former effect for the unfairness Gini. Furthermore, we find that the increase in post-tax unfairness is even larger than the increase in pre-tax unfairness, which shows that the tax system in Norway contributes less to eliminating unfairness in 2005 than in 1986.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 95 (2011)
Issue (Month): 7-8 (August)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505578
Income inequality Fairness;
Other versions of this item:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Erik Schokkaert & Kurt Devooght, 2003.
"Responsibility-sensitive fair compensation in different cultures,"
Social Choice and Welfare,
Springer, vol. 21(2), pages 207-242, October.
- Kurt Devooght & Erik Schokkaert, 1999. "Responsibility-Sensitive Fair Compensation in Different Cultures," STICERD - Distributional Analysis Research Programme Papers 46, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Erik Schokkaert & Kurt Devooght, 1999. "Responsibility-sensitive fair compensation in different cultures," LSE Research Online Documents on Economics 6574, London School of Economics and Political Science, LSE Library.
- James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September.
- Paglin, Morton, 1975. "The Measurement and Trend of Inequality: A Basic Revision," American Economic Review, American Economic Association, vol. 65(4), pages 598-609, September.
- Christian Belzil, 2006.
"The Return to Schooling in Structural Dynamic Models: A Survey,"
0609, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Belzil, Christian, 2007. "The return to schooling in structural dynamic models: a survey," European Economic Review, Elsevier, vol. 51(5), pages 1059-1105, July.
- Christian Belzil, 2007. "The Return to Schooling in Structural Dynamic Models: A Survey," Post-Print halshs-00201230, HAL.
- Belzil, Christian, 2006. "The Return to Schooling in Structural Dynamic Models: A Survey," IZA Discussion Papers 2370, Institute for the Study of Labor (IZA).
- Christian Belzil, 2006. "The Return to Schooling in Structural Dynamic Models: A Survey," Post-Print halshs-00142538, HAL.
- Fleurbaey, Marc, 2008.
"Fairness, Responsibility, and Welfare,"
Oxford University Press, number 9780199215911, October.
- Norman Frohlich & Joe Oppenheimer & Anja Kurki, 2004. "Modeling Other-Regarding Preferences and an Experimental Test," Public Choice, Springer, vol. 119(1_2), pages 91-117, 04.
- Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2009.
"Top Incomes in the Long Run of History,"
NBER Working Papers
15408, National Bureau of Economic Research, Inc.
- Bossert, Walter, 1995.
"Redistribution mechanisms based on individual characteristics,"
Mathematical Social Sciences,
Elsevier, vol. 29(1), pages 1-17, February.
- Bossert W., 1996. "Redistribution mechanisms based on individual characteristics," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 51-51, February.
- Bossert, W., 1993. "Redistribution Mechanisms Based on Individual Characteristics," Working Papers 9307, University of Waterloo, Department of Economics.
- FLEURBAEY, Marc & MANIQUET, François, .
"Fair income tax,"
CORE Discussion Papers RP
-1845, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Wulf Gaertner & Lars Schwettmann, 2007. "Equity, Responsibility and the Cultural Dimension," Economica, London School of Economics and Political Science, vol. 74(296), pages 627-649, November.
- Fleurbaey, Marc, 1995. "Equality and responsibility," European Economic Review, Elsevier, vol. 39(3-4), pages 683-689, April.
- Haegeland, Torbjorn & Klette, Tor Jakob & Salvanes, Kjell G, 1999.
" Declining Returns to Education in Norway? Comparing Estimates across Cohorts, Sectors and Over Time,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 101(4), pages 555-76, December.
- Haegeland, T. & Klette, T.J. & Salvanes, K.G., 1999. "Declining Returns to Education in NOrway? Comparing Estimates Across Cohorts, Sectors and Over Time," Papers 14/99, Norwegian School of Economics and Business Administration-.
- Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2007.
"Small Family, Smart Family? Family Size and the IQ Scores of Young Men,"
IZA Discussion Papers
3011, Institute for the Study of Labor (IZA).
- Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2010. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
- Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2007. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," NBER Working Papers 13336, National Bureau of Economic Research, Inc.
- Black, Sandra & Devereux, Paul J. & Salvanes, Kjell G, 2007. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," CEPR Discussion Papers 6443, C.E.P.R. Discussion Papers.
- Francois Bourguignon & Francisco H.B. Ferreira & Marta Menéndez, 2005.
"Inequality of Opportunity in Brazil,"
Ibero America Institute for Econ. Research (IAI) Discussion Papers
133, Ibero-America Institute for Economic Research.
- Marc Fleurbaey & Walter Bossert, 1996. "Redistribution and compensation (*)," Social Choice and Welfare, Springer, vol. 13(3), pages 343-355.
- Kurt Devooght, 2008. "To Each the Same and to Each his Own: A Proposal to Measure Responsibility-Sensitive Income Inequality," Economica, London School of Economics and Political Science, vol. 75(298), pages 280-295, 05.
- Alexander W. Cappelen & Astri D. Hole & Erik Ø. Sørensen & Bertil Tungodden, 2005.
"The Pluralism of Fairness Ideals: An Experimental Approach,"
CESifo Working Paper Series
1611, CESifo Group Munich.
- Alexander W. Cappelen & Astri Drange Hole & Erik Ø Sørensen & Bertil Tungodden, 2007. "The Pluralism of Fairness Ideals: An Experimental Approach," American Economic Review, American Economic Association, vol. 97(3), pages 818-827, June.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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.