Measuring Inequality of Well-Being with a Correlation-Sensitive Multidimensional Gini Index
AbstractWe propose to measure inequality of well-being with a multidimensional generalization of the Gini coefficient.� We derive two inequality indices from their underlying social evaluation functions.� These functions are conceived as a double aggregation functions: one across the dimensions of well-being, and another across the individuals.� They differ only with respect to the sequencing of aggregations.� We argue that the sequencing that does not exclude the Gini index to be sensitive to the correlation between the dimensions is more attractive.� We illustrate both Gini indices using Russian household data on three dimensions of well-being: expenditure, health and education.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 459.
Date of creation: 01 Nov 2009
Date of revision:
Multidimensional inequality; Single parameter Gini index; Correlation increasing majorization; Russia;
Other versions of this item:
- Koen Decancq & María Ana Lugo, 2009. "Measuring inequality of well-being with a correlation-sensitive multidimensional Gini index," Working Papers 124, ECINEQ, Society for the Study of Economic Inequality.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-14 (All new papers)
- NEP-CIS-2009-11-14 (Confederation of Independent States)
- NEP-HAP-2009-11-14 (Economics of Happiness)
- NEP-LTV-2009-11-14 (Unemployment, Inequality & Poverty)
- NEP-TRA-2009-11-14 (Transition Economics)
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