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Measuring Bipolarization, Inequality, Welfare and Poverty Author info | Abstract | Publisher info | Download info | Related research | Statistics Juan Gabriel Rodríguez () (Universidad Rey Juan Carlos)
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This paper analyzes the relationship between bipolarization and inequality, welfare and poverty measures. First, we clarify the similarities and differences between bipolarization and inequality measures. Second, it is shown that bipolarization is the difference between the welfare levels of the richer and poorer income groups when feelings of identification between individuals are based on their utility functions. In fact, bipolarization is interpreted as the welfare of the richer group that is wasted to compensate for income bipolarization. Third, a relationship between bipolarization measurement and the normalized poverty deficit index is established. These findings are applied to the polarization measures of Wolfson (1994), Esteban and Ray (1994) and Lasso de la Vega and Urrutia (2006).
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number
39.
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Length: 31 pages
Date of creation: 2006Date of revision:
Handle: RePEc:inq:inqwps:ecineq2006-39Contact details of provider: Email: Web page: http://www.ecineq.org More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Maria Ana Lugo).
Keywords: bipolarization inequality welfare poverty. Other versions of this item:
Find related papers by JEL classification: D39 - Microeconomics - - Distribution - - - Other D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
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References listed on IDEAS 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.: Esteban, J. & Gradin, C. & Ray, D., 1999.
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