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The evolution of World inequality in Well-being

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Author Info
Koen Decancq
André Decoster
Erik Schokkaert

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Abstract

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

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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0704.

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Date of creation: Mar 2007
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Handle: RePEc:ete:ceswps:ces0704

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Related research
Keywords: Multidimensional Inequality Measurement; Index of Well-being; Inter-country Inequality.;

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Find related papers by 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 and Poverty - - - General Welfare
O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General

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  1. Maria Ana Lugo & Esfandiar Maasoumi, 2008. "Multidimensional Poverty Measures from an Information Theory Perspective," Working Papers 85, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
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