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Dual‐Index Measurement Of Income Inequality

Author

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  • Joongyang Park
  • YoungSoon Kim
  • Seon‐ja Heo

Abstract

This study introduces the concept of unequally distributed income and proposes a dual‐index measurement of income inequality that evaluates the magnitude and dispersion of unequally distributed income. We use the Rawlsian index as a magnitude index and employ current income inequality indices as a dispersion index. We describe the properties of the Rawlsian and dispersion indices, and apply these indices to real income data. Further, we show that the Gini dispersion index is a weighted average of Rawlsian indices for the sub‐distributions of the unequally distributed income distribution.

Suggested Citation

  • Joongyang Park & YoungSoon Kim & Seon‐ja Heo, 2018. "Dual‐Index Measurement Of Income Inequality," Bulletin of Economic Research, Wiley Blackwell, vol. 70(3), pages 277-284, July.
    • Handle: RePEc:bla:buecrs:v:70:y:2018:i:3:p:277-284
    DOI: 10.1111/boer.12141
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    References listed on IDEAS

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    1. Finis Welch, 1999. "In Defense of Inequality," American Economic Review, American Economic Association, vol. 89(2), pages 1-17, May.
    2. Foster, James E., 1983. "An axiomatic characterization of the Theil measure of income inequality," Journal of Economic Theory, Elsevier, vol. 31(1), pages 105-121, October.
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    Cited by:

    1. Joongyang Park & Youngsoon Kim & Ae-Jin Ju, 2021. "Measuring income inequality based on unequally distributed income," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 309-322, April.
    2. Dongyub Lee & Sangwon Suh, 2025. "Measuring Income and Wealth Inequality: A Note on the Gini Coefficient for Samples with Negative Values," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 176(3), pages 947-965, February.

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