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Inequality and the GB2 Income Distribution

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  • Jenkins, Stephen P.

    ()
    (London School of Economics)

Abstract

The generalized entropy class of inequality indices is derived for Generalized Beta of the Second Kind (GB2) income distributions, thereby providing a full range of top-sensitive and bottom-sensitive measures. An examination of British income inequality in 1994/95 and 2004/05 illustrates the analysis.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2831.

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Length: 12 pages
Date of creation: Jun 2007
Date of revision:
Publication status: published in: Review of Income and Wealth, 2009, 55 (2), 392–398
Handle: RePEc:iza:izadps:dp2831

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Keywords: Singh-Maddala distribution; GB2 distribution; inequality; generalized entropy indices; Dagum distribution; generalized Beta of the second kind distribution;

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References

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  1. Butler, Richard J. & McDonald, James B., 1989. "Using incomplete moments to measure inequality," Journal of Econometrics, Elsevier, Elsevier, vol. 42(1), pages 109-119, September.
  2. Parker, Simon C., 1999. "The generalised beta as a model for the distribution of earnings," Economics Letters, Elsevier, Elsevier, vol. 62(2), pages 197-200, February.
  3. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, Econometric Society, vol. 52(6), pages 1369-85, November.
  4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, Elsevier, vol. 2(3), pages 244-263, September.
  5. Frank A. Cowell & Emmanuel Flachaire, 2007. "Income distribution and inequality measurement: The problem of extreme values," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00176029, HAL.
  6. McDonald, James B. & Xu, Yexiao J., 1995. "A generalization of the beta distribution with applications," Journal of Econometrics, Elsevier, Elsevier, vol. 69(2), pages 427-428, October.
  7. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 647-63, May.
  8. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, Econometric Society, vol. 47(4), pages 901-20, July.
  9. Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 47(3), pages 521-31, April.
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Cited by:
  1. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2009. "Parametric Estimations of the World Distribution of Income," NBER Working Papers 15433, National Bureau of Economic Research, Inc.

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