Income Inequality and Poverty
AbstractThe first part of this paper argues that income inequality is not a problem in need of remedy. The common practice of interpreting a rise in the gini coefficient measure of inequality as a bad thing violates the Pareto principle and is equivalent to using a social welfare function that puts negative weight on increases in the income of high income individuals. The real distributional problem is not inequality but poverty. The paper considers three sources of poverty and asks what if anything might be done about each of them: unemployment; a low level of earning capacity; and individual choice.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6770.
Date of creation: Oct 1998
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- D3 - Microeconomics - - Distribution
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-11-20 (All new papers)
- NEP-MIC-1998-11-20 (Microeconomics)
- NEP-PBE-1998-11-20 (Public Economics)
- NEP-PUB-1998-11-20 (Public Finance)
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.:
- Romer, Christina D. & Romer, David H., 1994. "Monetary policy matters," Journal of Monetary Economics, Elsevier, vol. 34(1), pages 75-88, August.
- Branko Milanovic, 2004.
"Why we all do care about inequality (but are loath to admit it),"
- Branko Milanovic, 2004. "Why we all do care about inequality (but are loath to admit it)," HEW 0404001, EconWPA.
- Erzo F.P. Luttmer, 2004.
"Neighbors as Negatives: Relative Earnings and Well-Being,"
NBER Working Papers
10667, National Bureau of Economic Research, Inc.
- Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 963-1002, August.
- Luttmer, Erzo F. P., 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," Working Paper Series rwp04-029, Harvard University, John F. Kennedy School of Government.
- M. Dolores Collado & Iñigo Iturbe Ormaetxe, 2008. "Public Transfers to the Poor: Is Europe really more Generous than the United States?," Working Papers. Serie AD 2008-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Abdelkrim Araar & Awoyemi Taiwo, 2006.
"Poverty and Inequality Nexus: Illustrations with Nigerian Data,"
AccessEcon, vol. 28(15), pages A0.
- Abdelkrim Araar & Awoyemi Taiwo Timothy, 2006. "Poverty and Inequality Nexus: Illustrations with Nigerian Data," Cahiers de recherche 0638, CIRPEE.
- Mary C. Daly & Daniel J. Wilson, 2006. "Keeping up with the Joneses and staying ahead of the Smiths: evidence from suicide data," Working Paper Series 2006-12, Federal Reserve Bank of San Francisco.
- Konstantinos D. Mavromatis, 2009. "Nonlinearities in the Real Exchange Rate and Monetary Policy: Interest Rate Rules Reconsidered," Working Papers 2009-4, Central Bank of Cyprus.
- Thomas A. Garrett, 2008. "U.S. income inequality: it's not so bad," The Regional Economist, Federal Reserve Bank of St. Louis, issue Oct, pages 4-5.
- Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, 2005. "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Development Economics Working Papers 22543, East Asian Bureau of Economic Research.
- Alfonso Gambardella & David Ulph, 2002. "Technology, Entrepreneurship, And Inequality," LEM Papers Series 2002/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Hopkins, Jeffrey W. & Morehart, Mitchell J., 2000. "Distributional Analysis Of U.S. Farm Household Income," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36517, Western Agricultural Economics Association.
- Timothy Smeeding, 1999. "Unequal incomes, unequal outcomes? Economic inequality and measures of well-being, closing discussion: social policy implications, general commentary," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 175-177.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.