Polarization, growth and social policy in the case of Israel, 1997-2008
AbstractIn this paper we study income polarization by first comparing the efficiency of two statistical models to identify the number of poles in the income distribution empirically. The statistical models used are a multi-resolution analysis (MRA) and a log-normal approach (LNA). We then apply the methodology to Israeli income data over the years 1997-2008 in order to empirically detect the number of income classes as sub-populations of incomes concentrated around an optimally determined number of poles. After that we compute polarization using a multiplicative normalized polarization measure, developed by Palacios-González and García-Fernández (An Intra-Group Variance Based Polarization Measure, 2010), which consists of three interacting components based on well-known axioms of Esteban and Ray (Extensions of a Measure of Polarization OCDE Countries, 1994). Finally we study the causes of the obtained polarization results in a multinomial logit analysis. --
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Bibliographic InfoArticle provided by Kiel Institute for the World Economy in its journal Economics: The Open-Access, Open-Assessment E-Journal.
Volume (Year): 7 (2013)
Issue (Month): 15 ()
polarization; poverty; multiresolution analysis; income distribution;
Other versions of this item:
- García-Fernándeza, Rosa María & Gottlieb, Daniel & Palacios-González, Federico, 2012. "Polarization, growth and social policy in the case of Israel, 1997 - 2008," Economics Discussion Papers 2012-55, Kiel Institute for the World Economy.
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- J1 - Labor and Demographic Economics - - Demographic Economics
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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