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The evolution of world inequality in well-being

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  • DECANCK, Koen
  • DECOSTER, André
  • SCHOOKAERT, Erik

Abstract

Summary In this paper, we use the tools offered by the recent literature on multidimensional inequality measurement to investigate the evolution of the inequality in well-being across different countries during 1975-2000. We focus on three important dimensions of life: standard of living, health, and education. Inequality in the three dimensions shows a different trend during 1975-2000. We propose a flexible measure of well-being to quantify the evolution of overall intercountry well-being inequality. The empirical results are sensitive to different normative choices on the trade-offs between the different dimensions. Especially the concave transformation of income turns out to be decisive for the evolution of world inequality in well-being.
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Suggested Citation

  • DECANCK, Koen & DECOSTER, André & SCHOOKAERT, Erik, 2009. "The evolution of world inequality in well-being," LIDAM Reprints CORE 2140, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:2140
    DOI: 10.1016/j.worlddev.2007.12.006
    Note: In : World Development, 37(1), 11-25, 2009
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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