A New Framework of Measuring Inequality: Variable Equivalence Scales and Group-Specific Well-Being Limits ; Sensitivity Findings for German Personal Income Distribution 1995-2009
AbstractThe discussion paper examines sensitivity influences on the German personal income distribution in a time-series perspective and in a methodically broad manner. The author spins on the following ¿adjusting screws¿ of distributional analyses: (1) different kinds of equivalence scales, (2) different demarcations of income areas (in the sense of social classes), (3) different inequality indicators, and (4) different income operationalisations. Furthermore, the new approach related to measuring income inequality, which is presented in the paper and which incorporates variable equivalence scales, is applied to socio-demographic stratification in Germany to exemplarily demonstrate the power of this new approach. All in all, the analyses of the paper point to the necessity of a rigorous methodological foundation of distributional studies, especially concerning the selection of a set of (preferably variable) equivalence scales, the choice of the inequality indicator, and ¿ not least ¿ of the income variable. This paper refers to data from the German Socio-Economic Panel (1995-2009) in contrast to FaMa discussion paper 6/2010 which partly was similar to this paper but methodologically less elaborated; the last-mentioned paper was related to the German Income and Consumption Surveys (¿Einkommens- und Verbrauchsstichproben¿) 1993-2003.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 401.
Length: 26 p.
Date of creation: 2011
Date of revision:
Other versions of this item:
- Jürgen Faik, 2011. "A new framework of measuring inequality: Variable equivalence scales and group-specific well-being limits. Sensitivity findings for German personal income distribution 1995-2009," Working Papers 219, ECINEQ, Society for the Study of Economic Inequality.
- D30 - Microeconomics - - Distribution - - - General
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D60 - Microeconomics - - Welfare Economics - - - General
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bradbury, Bruce, 1994.
"Measuring the Cost of Children,"
Australian Economic Papers,
Wiley Blackwell, vol. 33(62), pages 120-38, June.
- Udo Ebert & Patrick Moyes, 2003. "Equivalence Scales Reconsidered," Econometrica, Econometric Society, vol. 71(1), pages 319-343, January.
- Jürgen Faik, 2011. "Der Zerlegungs-Ansatz – ein alternativer Vorschlag zur Messung von Armut," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, vol. 4(4), pages 293-315, January.
- Aaberge, Rolf & Melby, Ingrid, 1998. "The Sensitivity of Income Inequality to Choice of Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 565-69, December.
- Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January.
- Donaldson, David & Pendakur, Krishna, 2004. "Equivalent-expenditure functions and expenditure-dependent equivalence scales," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 175-208, January.
- Clark, Andrew E. & Oswald, Andrew J., 1996.
"Satisfaction and comparison income,"
Journal of Public Economics,
Elsevier, vol. 61(3), pages 359-381, September.
- Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September.
- Olga Cantó & Coral del Río & Carlos Gradín, . "Poverty Statics And Dynamics: Does The Accounting Period Matter?," Working Papers 22-02 Classification-JEL , Instituto de Estudios Fiscales.
- Jürgen Faik, 2011. "A Behaviouristic Approach for Measuring Poverty: The Decomposition Approach ; Empirical Illustrations for Germany 1995-2009," SOEPpapers on Multidisciplinary Panel Data Research 383, DIW Berlin, The German Socio-Economic Panel (SOEP).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.