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The evolution of income inequality in the European Union during the period 1993-1996

Author

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  • Santiago Alvarez-Garcia
  • Juan Prieto-Rodriguez
  • Rafael Salas

Abstract

The objective of this work is to analyse the income inequality in the 15 EU countries during the convergence process to the Monetary Union, using the information contained in the European Community Household Panel, corresponding to the four first waves. Using the inverse second order stochastic dominance concept, an ordering of these countries has been carried out. Furthermore, this ranking allows one to determine if the differences among EU country members have increased or decreased during this particular period. Whether the inequality of income has diminished within and between countries over time was studied. Gini's generalized family indices proposed by Donaldson and Weymark (Journal of Economic Theory 22: 67-86, 1980 and 29: 353-8, 1983) and Yitzhaki (International Economic Review 24: 617-28, 1983) have been used. This allows one to test the sensitivity of the results obtained to different degrees of inequality aversion and to different equivalence scales, taking into account household sizes.

Suggested Citation

  • Santiago Alvarez-Garcia & Juan Prieto-Rodriguez & Rafael Salas, 2004. "The evolution of income inequality in the European Union during the period 1993-1996," Applied Economics, Taylor & Francis Journals, vol. 36(13), pages 1399-1408.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1399-1408
    DOI: 10.1080/0003684042000206997
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    References listed on IDEAS

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    1. Rolf Aaberge, 2009. "Ranking intersecting Lorenz curves," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(2), pages 235-259, August.
    2. Claudio Zoli, 1999. "Intersecting generalized Lorenz curves and the Gini index," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 16(2), pages 183-196.
    3. Rafael Salas, 2002. "Multilevel interterritorial convergence and additive multidimensional inequality decomposition," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 207-218.
    4. 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 617-628, October.
    5. Donaldson, David & Weymark, John A., 1983. "Ethically flexible gini indices for income distributions in the continuum," Journal of Economic Theory, Elsevier, vol. 29(2), pages 353-358, April.
    6. Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February.
    7. Cowell, Frank A. & Victoria-Feser, Maria-Pia, 1996. "Poverty measurement with contaminated data: A robust approach," European Economic Review, Elsevier, vol. 40(9), pages 1761-1771, December.
    8. Muliere, Pietro & Scarsini, Marco, 1989. "A note on stochastic dominance and inequality measures," Journal of Economic Theory, Elsevier, vol. 49(2), pages 314-323, December.
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    Cited by:

    1. Alexiadis, Stilianos & Kokkidis, Stilianos, 2010. "Convergence in Agriculture: Evidence from the regions of an Enlarged EU," MPRA Paper 26011, University Library of Munich, Germany.
    2. Alexiadis, Stilianos & Eleftheriou, Konstantinos, 2010. "The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model," MPRA Paper 20096, University Library of Munich, Germany.
    3. Stilianos Alexiadis & Alexandros Alexandrakis, 2008. "Threshold Conditions and Regional Convergence in European Agriculture," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 1(2), pages 13-37, December.

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