Empirical Applications of Multidimensional Inequality Analysis
AbstractThis paper explores the empirical application of theoretical multidimensional inequality analysis using real household welfare distributions. The paper operationalises recent conceptual developments in multidimensional inequality theory and assesses their usefulness for measurement and policy analysis. Despite the existence of a thriving theoretical literature on multidimensional inequality, empirical applications, particularly at the individual and household levels, are few and far between. This paper compares and contrasts different methodologies for the analysis of multidimensional welfare, including multidimensional inequality indices and stochastic dominance techniques. The results strongly highlight the importance of bringing non-monetary aspects of household welfare into the forefront of inequality analysis since measurements based solely on the distribution of income variables may misrepresent the degree of overall inequality in society. Agreement over the various approaches to the measurement of multidimensional inequality entails, however, non-trivial decisions that may limit the practical usefulness of these measures. We suggest that the use of multidimensional inequality ranges and restrictive dominance criteria may open significant scope for further developments in the empirical analysis of multidimensional inequality.
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Bibliographic InfoPaper provided by Poverty Research Unit at Sussex, University of Sussex in its series PRUS Working Papers with number 23.
Length: 45 pages
Date of creation: Jun 2005
Date of revision:
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More information through EDIRC
Multidimensional inequality; inequality indices; income inequality; education inequality; health inequality; stochastic dominance;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I19 - Health, Education, and Welfare - - Health - - - Other
- I29 - Health, Education, and Welfare - - Education - - - Other
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