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Estimation of Concentration Measures and Their Standard Errors for Income Distributions in Poland

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  • Alina Jędrzejczak

Abstract

Measures of concentration (inequality) are often used in the analysis of income and wage size distributions. Among, them the Gini and Zenga coefficients are of greatest importance. It is well known that income inequality in Poland increased significantly in the period of transformation from a centrally planned economy to a market economy. High income inequality can be a source of serious problems, such as increasing poverty, social stratification, and polarization. Therefore, it seems especially important to present reliable estimates of income inequality measures for a population of households in Poland in different divisions. In this paper, some estimation methods for Gini and Zenga concentration measures are presented together with their application to the analysis of income distributions in Poland by socio-economic groups. The basis for the calculations was individual data coming from the Polish Household Budget Survey conducted by the Central Statistical Office. The standard errors of Gini and Zenga coefficients were estimated by means of the bootstrap and the parametric approach based on the Dagum model. Copyright The Author(s) 2012

Suggested Citation

  • Alina Jędrzejczak, 2012. "Estimation of Concentration Measures and Their Standard Errors for Income Distributions in Poland," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(3), pages 287-297, August.
    • Handle: RePEc:kap:iaecre:v:18:y:2012:i:3:p:287-297:10.1007/s11294-012-9361-4
    DOI: 10.1007/s11294-012-9361-4
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    References listed on IDEAS

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    1. Davidson, Russell, 2009. "Reliable inference for the Gini index," Journal of Econometrics, Elsevier, vol. 150(1), pages 30-40, May.
    2. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
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    More about this item

    Keywords

    Income distribution; Income inequality; Variance estimation; C10; J30;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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