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Country Inequality Rankings and Conversion Schemes

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  • Timm Bönke
  • Carsten Schröder

Abstract

Two conversion schemes are usually employed for assessing personal-income inequality from household equivalent incomes: to weight household units by size or by needs.Using data from the Luxembourg Income Study, we show the sensitivity of country inequality rankings to conversion schemes and explain the finding by means of inequality decomposition. A bootstrap approach is implemented to test for statistical significance of our results.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.362736.de/dp1068.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1068.

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Length: 18 , Anh. p.
Date of creation: 2010
Date of revision:
Handle: RePEc:diw:diwwpp:dp1068

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Keywords: inequality; equivalence scale; equivalent income; weighting scheme; decomposition;

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Cited by:
  1. Lynn A. Karoly & Carsten Schröder, 2014. "Fast Methods for Jackknifing Inequality Indices," SOEPpapers on Multidisciplinary Panel Data Research 643, DIW Berlin, The German Socio-Economic Panel (SOEP).

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