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The evolution of income inequality in the European Union

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Author Info

  • Santiago Alvarez-Garcia

    (IEF & Universidad de Oviedo)

  • Juan Prieto-Rodriguez

    (University of Oviedo & IEF)

  • Rafael Salas

    (Universidad Complutense-Madrid & IEF)

Abstract

The objective of this work is to analyse the income inequality in the 15 EU countries during the convergence process to the Monetary Union. Using the information contained in the European Community Household Panel, corresponding to the four first waves. Using the inverse second order stochastic dominance concept, we have carried out an ordering of these countries. Furthermore, this ranking allows us to determine if the differences among EU country members have increased or decreased during this particular period, that is, if there was a real convergence in income equality. In addition, we have also studied whether the inequality of income has diminished within and between countries over time. Gini's generalised family indices proposed by Donaldson and Weymark (1980 and 1983) and Yitzhaki (1983) have been used. This allows us to test the sensitivity of the results obtained to different degrees of inequality aversion and to different equivalence scales, taking into account household sizes.

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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0309003.

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Date of creation: 13 Sep 2003
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Handle: RePEc:wpa:wuwppe:0309003

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Web page: http://128.118.178.162

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Keywords: Inequality; European Union; income distribution; stochastic dominance;

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References

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  1. Juan Gabriel Rodríguez & Rafael Salas, 2004. "A Bistochastic Nonparametric Estimator," Economic Working Papers at Centro de Estudios Andaluces E2004/22, Centro de Estudios Andaluces.
  2. Lluis Bru & Susana Cabrera & C. Mónica Capra & Rosario Gómez, . "Experimentos Secuenciales En La Gestión De Los Recursos Comunes," Working Papers 5-02 Classification-JEL :, Instituto de Estudios Fiscales.
  3. Juan Prieto-Rodríguez & Víctor Fernández-Blanco, 2006. "Optimal pricing and grant policies for museums," Journal of Cultural Economics, Springer, vol. 30(3), pages 169-181, December.
  4. Juan Prieto-Rodríguez & Rafael Salas & Santiago Álvarez-García, . "Movilidad Social Y Desigualdad Económica," Working Papers 7-02 Classification-JEL :, Instituto de Estudios Fiscales.
  5. Luis Ayala & Rosa Martínez & Jesús Ruiz Huerta, 2003. "Equivalence scales in tax and transfer policies," Investigaciones Economicas, Fundación SEPI, vol. 27(3), pages 593-614, September.
  6. Jorge Onrubia & Rafael Salas & José Sanz, 2005. "Redistribution and labour supply," Journal of Economic Inequality, Springer, vol. 3(2), pages 109-124, August.
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Cited by:
  1. José Javier Núñez-Velázquez & Juana Domínguez-Domínguez, 2007. "A Proposal of a Synthetic Indicator to Measure Poverty Intensity, With an Application to EU-15 Countries," Working Papers 81, ECINEQ, Society for the Study of Economic Inequality.
  2. Marta Pascual & David Cantarero & Jose Maria Sarabia, 2004. "Trends in income inequality in the European Union: implications for health inequalities," ERSA conference papers ersa04p304, European Regional Science Association.
  3. Van Ourti, Tom & van Doorslaer, Eddy & Koolman, Xander, 2009. "The effect of income growth and inequality on health inequality: Theory and empirical evidence from the European Panel," Journal of Health Economics, Elsevier, vol. 28(3), pages 525-539, May.
  4. Carlos Mulas-Granados, 2005. "Fiscal Adjustments and the Short-Term Trade-Off between economic growth and equality," Hacienda Pública Española, IEF, vol. 172(1), pages 61-92, June.
  5. Tom Van Ourti & Eddy Van Doorslaer & Xander Koolman, 2006. "The Effect of Growth and Inequality in Incomes on Health Inequality: Theory and Empirical Evidence from the European Panel," Tinbergen Institute Discussion Papers 06-108/3, Tinbergen Institute.
  6. José María Sarabia & Marta Pascual & David Cantarero, 2003. "Income Inequality Rankings for Different Equivalence Scales and Population Health," ERSA conference papers ersa03p160, European Regional Science Association.

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