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Relative Income Changes and an Identification of Growth Pattern

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  • Marek Kośny

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    (Wroclaw University of Economics)

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    Abstract

    The paper proposes a method of identification of a growth pattern by analyzing the direct relation between income (or some other measure of wealth) of the poorer and of the richer. To this end the basic idea underlying Zenga’s concept of inequality measurement is applied. The proposed relative income change measures allude to the intuitive concept of the proportion of two averages: upper and lower – with respect to a given quantile of the income distribution. In this sense it directly refers to the relation of the poor and the non-poor. The relative income change measure is then applied to the analysis of income growth pattern in selected countries, using the data from Luxembourg Income Study Database.

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-268.pdf
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    Bibliographic Info

    Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 268.

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    Length: 23 pages
    Date of creation: Sep 2012
    Date of revision:
    Handle: RePEc:inq:inqwps:ecineq2012-268

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    Keywords: growth pattern; income distribution; pro-poor growth;

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    1. Duclos, Jean-Yves & Grégoire, Philippe, 2003. "Absolute and Relative Deprivation and the Measurement of Poverty," Cahiers de recherche 0302, CIRPEE.
    2. Silber, Jacques & Verme, Paolo, 2012. "Relative deprivation, reference groups and the assessment of standard of living," Policy Research Working Paper Series 5930, The World Bank.
    3. Jean-Yves Duclos & Quentin Wodon, 2004. "What is "Pro-Poor"?," Cahiers de recherche 0425, CIRPEE.
    4. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
    5. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
    6. Frank A Cowell & Udo Ebert, 2002. "Complaints and Inequality," STICERD - Distributional Analysis Research Programme Papers 61, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    7. Deutsch, Joseph & Silber, Jacques, 2011. "On various ways of measuring pro-poor growth," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 5(13), pages 1-57.
    8. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
    9. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
    10. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    11. Nanak Kakwani & Hyun H. Son, 2008. "Poverty Equivalent Growth Rate," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 643-655, December.
    12. Daniel T. Slesnick, 1998. "Empirical Approaches to the Measurement of Welfare," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2108-2165, December.
    13. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
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