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Local Indicators of Dispersion: A Relational Approach to Measuring Inequality

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  • Mejía Ramón, Andrés G.

    (Okinawa Institute of Science and Technology Graduate University)

  • Munson, Jessica

Abstract

This paper presents a novel approach to measuring inequality, centering on the principles of relationship and subjectivity. We describe the limitations of traditional metrics like Gini indexes in capturing the complex, inherently relational nature of inequality. By considering inequality as a series of subjective judgments made by individuals within their social cohorts, this study introduces a method where observations on inequality are aggregated both locally and globally, offering a nuanced view that accounts for both in-group and out-group disparities and proposing an inferential procedure to identify significant disparities at multiple levels. The approach is demonstrated through a case study on global wealth inequality, showcasing the dynamic and multifaceted nature of economic disparities across trading blocs.

Suggested Citation

  • Mejía Ramón, Andrés G. & Munson, Jessica, 2024. "Local Indicators of Dispersion: A Relational Approach to Measuring Inequality," SocArXiv rdkjq, Center for Open Science.
    • Handle: RePEc:osf:socarx:rdkjq
    DOI: 10.31219/osf.io/rdkjq
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