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Relative Inequality And Poverty In Germany And The United States Using Alternative Equivalence Scales

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  • Richard V. Burkhauser
  • Timothy M. Smeeding
  • Joachim Merz

Abstract

We use data from the Luxembourg Income Study to show the sensitivity of measures of relative economic well‐being of persons in the U.S. and Germany using official equivalence scales and consumption‐based country‐specific equivalence scales developed for the two countries. Overall inequality and poverty levels are found not to be sensitive to the equivalence scale used. However, the official German equivalence scale yields quite different results from the others with respect to the relative income and poverty levels of vulnerable groups within the population, especially older single people.

Suggested Citation

  • Richard V. Burkhauser & Timothy M. Smeeding & Joachim Merz, 1996. "Relative Inequality And Poverty In Germany And The United States Using Alternative Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 381-400, December.
    • Handle: RePEc:bla:revinw:v:42:y:1996:i:4:p:381-400
    DOI: 10.1111/j.1475-4991.1996.tb00190.x
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    References listed on IDEAS

    as
    1. Merz, Joachim & Garner, Thesia & Smeeding, Timothy M. & Faik, Jürgen & Johnson, David, 1994. "Two Scales, One Methodology - Expenditure Based Equivalence Scales for the United States and Germany," MPRA Paper 7233, University Library of Munich, Germany.
    2. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    3. Richard V. Burkhauser & Greg J. Duncan & Richard Hauser & Roland Berntsen, 1990. "Economic Burdens Of Marital Disruptions: A Comparison Of The United States And The Federal Republic Of Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(4), pages 319-333, December.
    4. repec:bla:revinw:v:36:y:1990:i:4:p:319-33 is not listed on IDEAS
    5. Lee Rainwater & Anthony Atkinson & Timothy Smeeding, 1994. "Income Distribution in Advanced Economies: The Evidence from the Luxembourg Income Study (LIS)," LIS Working papers 120, LIS Cross-National Data Center in Luxembourg.
    6. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    7. Jenkins, Stephen P & Cowell, Frank A, 1994. "Parametric Equivalence Scales and Scale Relativities," Economic Journal, Royal Economic Society, vol. 104(425), pages 891-900, July.
    8. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
    9. repec:bla:revinw:v:34:y:1988:i:2:p:115-42 is not listed on IDEAS
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    More about this item

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D30 - Microeconomics - - Distribution - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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