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Measuring Inequality of Well-Being with a Correlation-Sensitive Multidimensional Gini Index

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  • Maria Ana Lugo
  • Koen Decancq

Abstract

We 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 Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 459.

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Date of creation: 01 Nov 2009
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Handle: RePEc:oxf:wpaper:459

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Keywords: Multidimensional inequality; Single parameter Gini index; Correlation increasing majorization; Russia;

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Cited by:
  1. Croci Angelini, Elisabetta & Michelangeli, Alessandra, 2012. "Axiomatic measurement of multidimensional well-being inequality: Some distributional questions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 548-557.
  2. BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2009. "Multidimensional Poverty and Material Deprivation," Cahiers de recherche 2009-11, Universite de Montreal, Departement de sciences economiques.

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