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Determinant factors in the convergence of welfare effort in OECD countries: a decomposition of the Theil indices

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  • Jon Olaskoaga-Larrauri
  • Ricardo Alaez-Aller
  • Eneko Arrospide-Zabala

Abstract

This article uses Theil's index to confirm the convergence of welfare effort in 21 developed countries. Taking advantage of the properties of this index, this article decomposes the dispersion of effort into its immediate determinants and thus illustrates that it is possible for there to be convergence in welfare effort but not in the intensity with which national systems protect their citizens.

Suggested Citation

  • Jon Olaskoaga-Larrauri & Ricardo Alaez-Aller & Eneko Arrospide-Zabala, 2011. "Determinant factors in the convergence of welfare effort in OECD countries: a decomposition of the Theil indices," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1263-1266.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:13:p:1263-1266
    DOI: 10.1080/13504851.2010.532102
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    References listed on IDEAS

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    1. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    2. Goerlich Gisbert, Francisco J., 2001. "On factor decomposition of cross-country income inequality: some extensions and qualifications," Economics Letters, Elsevier, vol. 70(3), pages 303-309, March.
    3. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    4. Cheng, Yuk-shing & Li, Sung-ko, 2006. "Income inequality and efficiency: A decomposition approach and applications to China," Economics Letters, Elsevier, vol. 91(1), pages 8-14, April.
    5. Duro, Juan Antonio & Esteban, Joan, 1998. "Factor decomposition of cross-country income inequality, 1960-1990," Economics Letters, Elsevier, vol. 60(3), pages 269-275, September.
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    Cited by:

    1. Mitsuhiko Kataoka, 2018. "Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 297-313, August.

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