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Income Inequality Indices Interpreted as Measures of Relative Deprivation/Satisfaction

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  • Luis Imedio-Olmedo
  • Encarnación Parrado-Gallardo
  • Elena Bárcena-Martín

    ()

Abstract

This paper considers different ways of making comparisons between individuals in terms of deprivation and/or satisfaction. This allows the Gini index, the Bonferroni index and the De Vergottini index to be interpreted as social deprivation measures as well as social satisfaction measures. The inequality measures that belong to the β family, or linear combinations of them, are obtained when using different weighting schemes to average the deprivation and satisfaction associated with each income level. Particularly, the generalised Gini indices (Yitzhaki, Int Econ Rev 24:617–628 in 1983 ), the indices proposed by Aaberge (J Econ Inequal 5(3):305–322, 2007 ) or those proposed by Imedio-Olmedo et al. (J Public Econ Theory 13(1):97–124, 2011 ) can be used to evaluate social deprivation or social satisfaction in an income distribution. Copyright Springer Science+Business Media B.V. 2012

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Bibliographic Info

Article provided by Springer in its journal Social Indicators Research.

Volume (Year): 109 (2012)
Issue (Month): 3 (December)
Pages: 471-491

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Handle: RePEc:spr:soinre:v:109:y:2012:i:3:p:471-491

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Web page: http://www.springer.com/economics/journal/11135

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Keywords: Inequality; Inter-individual comparisons; Weighted means; β family;

References

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  1. Yitzhaki, Shlomo, 1982. "Relative deprivation and economic welfare," European Economic Review, Elsevier, vol. 17(1), pages 99-113.
  2. Frank Cowell & Udo Ebert, 2002. "Complaints and inequality," LSE Research Online Documents on Economics 2204, London School of Economics and Political Science, LSE Library.
  3. Brice Magdalou & Patrick Moyes, 2009. "Deprivation, welfare and inequality," Social Choice and Welfare, Springer, vol. 32(2), pages 253-273, February.
  4. Yitzhaki, Shlomo, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 321-24, May.
  5. Chakravarty, Satya R & Mukherjee, Diganta, 1998. "Lorenz Domination, Utilitarian Deprivation Rule and Equal Sacrifice Principle," The Manchester School of Economic & Social Studies, University of Manchester, vol. 66(5), pages 521-31, December.
  6. Di Tella, Rafael & Alesina, Alberto & MacCulloch, Robert, 2004. "Inequality and Happiness: Are Europeans and Americans Different?," Scholarly Articles 4553007, Harvard University Department of Economics.
  7. Rolf Aaberge, 2007. "Gini’s nuclear family," Journal of Economic Inequality, Springer, vol. 5(3), pages 305-322, December.
  8. Hey, John D & Lambert, Peter J, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 567-73, November.
  9. Satya Chakravarty, 2007. "A deprivation-based axiomatic characterization of the absolute Bonferroni index of inequality," Journal of Economic Inequality, Springer, vol. 5(3), pages 339-351, December.
  10. Podder, Nripesh, 1996. "Relative Deprivation, Envy and Economic Inequality," Kyklos, Wiley Blackwell, vol. 49(3), pages 353-76.
  11. Chakravarty, S. R. & Chakraborty, A. B., 1984. "On indices of relative deprivation," Economics Letters, Elsevier, vol. 14(2-3), pages 283-287.
  12. Paul, Satya, 1991. "An index of relative deprivation," Economics Letters, Elsevier, vol. 36(3), pages 337-341.
  13. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
  14. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
  15. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-28, October.
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Cited by:
  1. Walter Bossert & Conhita D’Ambrosio, 2012. "Proximity-Sensitive Individual Deprivation Measures," Working Papers 283, ECINEQ, Society for the Study of Economic Inequality.

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