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Trends in real income in Britain: a microeconomic analysis

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  • Jenkins, Stephen P.

Abstract

Trends in real national income are typically assessed using aggregate indicators such as GDP per capita, or mean household income, whereas the income distribution literature focuses on trends in income inequality. By contrast this paper takes an integrated approach to real national income measurement; it uses methods incorporating both size and distributional considerations, and applies them to household income microdata in order to measure changes in real income in the U.K. over the period during the 1980s. A parametric class of decomposable real income indices is proposed which complements quasi-ordering methods such as rank and generalised dominance criteria by telling us how much real income increased over the period (if at all). The indices are also additively decomposable by population subgroup, a property which helps reveal who the gainers and losers were. The analysis also draws attention to the normative and statistical issues raised by the presence of a few very small incomes.

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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 96-07.

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Date of creation: 01 Aug 1996
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Publication status: published
Handle: RePEc:ese:iserwp:96-07

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Phone: 44-1206-872957
Fax: 44-1206-873151
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web: https://www.iser.essex.ac.uk/publications/

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Cited by:
  1. Frank Cowell & Stephen P Jenkins, 2000. "Estimating welfare indices : household weights and sample design," LSE Research Online Documents on Economics 2160, London School of Economics and Political Science, LSE Library.
  2. Francesco Devicienti & Andrea Borgarello, 2001. "Trends in the Italian Earnings Distribution, 1985-1996," LABORatorio R. Revelli Working Papers Series 2, LABORatorio R. Revelli, Centre for Employment Studies.
  3. Manos Matsaganis & Chrysa Leventi, 2014. "Distributive Effects of the Crisis and Austerity in Seven EU Countries," ImPRovE Working Papers 14/04, Herman Deleeck Centre for Social Policy, University of Antwerp.
  4. repec:ese:iserwp:2011-06 is not listed on IDEAS
  5. Murray Leibbrandt & Laura Poswell & Pranushka & Matthew Welch & Ingrid Woolard, 2004. "Measuring recent changes in South African inequality and poverty using 1996 and 2001 census data," SALDRU/CSSR Working Papers 084, Southern Africa Labour and Development Research Unit, University of Cape Town.
  6. Jenkins, Stephen P. & Van Kerm, Philippe, 2011. "Trends in Individual Income Growth: Measurement Methods and British Evidence," IZA Discussion Papers 5510, Institute for the Study of Labor (IZA).
  7. Stephan Klasen, 2008. "The Efficiency of Equity," Review of Political Economy, Taylor & Francis Journals, vol. 20(2), pages 257-274.
  8. Gruen, Carola & Klasen, Stephan, 2012. "Has transition improved well-being?," Economic Systems, Elsevier, vol. 36(1), pages 11-30.
  9. Carola GrĂ¼n & Stephan Klasen, 2003. "Growth, Income Distribution, and Well-Being: Comparisons across Space and Time," CESifo Working Paper Series 837, CESifo Group Munich.

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