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Ranking Income Distributions When Needs Differ

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  • Jenkins, Stephen P
  • Lambert, Peter J

Abstract

The authors derive criteria for ranking income distributions where households differ in equity-relevant nonincome characteristics ('needs'), using methods that do not require cardinal specifications of equivalence scales. They consider comparisons for situations where the distributions of needs differ (e.g., cross-nationally or intertemporally), building on the results of A. B. Atkinson and F. Bourguignon (1987) and A. B. Atkinson (1992). The modifications required when the individual rather than the household is the income-receiving unit are also discussed. The authors illustrate the methods with an analysis of changes in social welfare and poverty in the United Kingdom between 1981 and 1986. Copyright 1993 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Jenkins, Stephen P & Lambert, Peter J, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 337-356, December.
  • Handle: RePEc:bla:revinw:v:39:y:1993:i:4:p:337-56
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