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Losing ground in the income hierarchy: relative deprivation revisited

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  • Walter Bossert

    (University of Montreal)

  • Conchita D’Ambrosio

    (University of Luxembourg)

Abstract

The paper discusses a one-parameter generalization of individual relative deprivation measures to a two-period setting that differs from earlier approaches. The parameter is, by definition, independent of the income distributions under consideration—it is to be chosen by a social planner. Its value has an intuitive interpretation: it represents the additional weight assigned to the income shortfalls associated with agents who passed the individual in question when moving from yesterday’s income distribution to today’s. Therefore, the choice of this parameter represents an important value judgment on the part of a social planner regarding the relative impact of being left behind. As a special case, it is illustrated how the well-known Yitzhaki index can be extended to this environment. Journal of Economic Literature Classification No.: D63.

Suggested Citation

  • Walter Bossert & Conchita D’Ambrosio, 2020. "Losing ground in the income hierarchy: relative deprivation revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(1), pages 1-12, March.
    • Handle: RePEc:spr:joecin:v:18:y:2020:i:1:d:10.1007_s10888-019-09428-4
    DOI: 10.1007/s10888-019-09428-4
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    References listed on IDEAS

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    Cited by:

    1. Jinyu Pan & Zhenzhi Yang, 2023. "Knowledge mapping of relative deprivation theory and its applicability in tourism research," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.

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    More about this item

    Keywords

    Relative deprivation; Equity; Individual Well-Being;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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