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Measuring Income Inequality in Euroland

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  • Beblo, Miriam
  • Knaus, Thomas

Abstract

In this paper we propose an aggregate measure of income inequality for the founding countries of the European Monetary Union. Applying the methodology of the Theil index we are able to derive a measure for Euroland as a whole by using complementary data from the European Community Household Panel and the Luxembourg Income Study. The property of additive decomposability allows us to determine each country's contribution as well as that of each demographic group to overall income inequality. In addition the impact of government transfers on this inequality measure is assessed. Copyright 2001 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Beblo, Miriam & Knaus, Thomas, 2001. "Measuring Income Inequality in Euroland," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 301-320, September.
  • Handle: RePEc:bla:revinw:v:47:y:2001:i:3:p:301-20
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    Cited by:

    1. Tim Goedemé & Lorena Zardo Trindade & Frank Vandenbroucke, 2017. "A Pan-European Perspective on Low-Income Dynamics in the EU," Working Papers 1703, Herman Deleeck Centre for Social Policy, University of Antwerp.
    2. Katja Hölsch, 2002. "The Effect of Social Transfers in Europe: An Empirical Analysis Using Generalized Lorenz Curves," LIS Working papers 317, LIS Cross-National Data Center in Luxembourg.
    3. James Galbraith & Enrique Garcilazo, 2005. "Pay Inequality in Europe 1995-2000: Convergence Between Countries and Stability Inside," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 139-175, December.
    4. Merz, Joachim & Hirschel, Dierk, 2003. "The distribution and re-distribution of income of selfemployed as freelancers and entrepreneurs in Europe," MPRA Paper 5981, University Library of Munich, Germany.
    5. Florence Bouvet, 2010. "EMU and the dynamics of regional per capita income inequality in Europe," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 323-344, September.
    6. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "The spatial distribution of income inequality in the European Union," Environment and Planning A, Pion Ltd, London, vol. 39(4), pages 869-890, April.
    7. Moser, Mathias & Schnetzer, Matthias, 2014. "The Geography of Average Income and Inequality: Spatial Evidence from Austria," Department of Economics Working Paper Series 4349, WU Vienna University of Economics and Business.
    8. Andrea Brandolini & Alfonso Rosolia & Roberto Torrini, 2011. "The distribution of employees’ labour earnings in the European Union: Data, concepts and first results," Working Papers 198, ECINEQ, Society for the Study of Economic Inequality.
    9. Onno Hoffmeister, 2006. "Inequality of Personal Income in the Enlarged EU: The Role of the Welfare States, Regional Cohesion Policies and Economic Integration," LIS Working papers 440, LIS Cross-National Data Center in Luxembourg.
    10. David Jesuit, 2008. "Subnational Analyses Using the Luxembourg Income Study (LIS) Data Archive," LIS Working papers 494, LIS Cross-National Data Center in Luxembourg.
    11. Timothy Smeeding & David Jesuit, 2002. "Poverty Levels in the Developed World," LIS Working papers 321, LIS Cross-National Data Center in Luxembourg.
    12. Heshmati, Almas, 2004. "Regional Income Inequality in Selected Large Countries," IZA Discussion Papers 1307, Institute for the Study of Labor (IZA).
    13. Antonelli, Cristiano & Gehringer, Agnieszka, 2013. "Innovation and Income Inequality," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201311, University of Turin.
    14. Richard V. Burkhauser, 2009. "Deconstructing European poverty measures: What relative and absolute scales measure," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(4), pages 715-725.
    15. Jiří Hasman & Josef Novotný, 2015. "Cross-National Variation in Income Inequality and its Determinants: An Application of Bayesian Model Averaging on a New Standardized Inequality Data Set," Prague Economic Papers, University of Economics, Prague, vol. 2015(2), pages 211-224.
    16. Onno Hoffmeister, 2006. "Die retionale Dimension sozialer Ungleichheit in der erweiterten Europäischen Union: Statistische, wirtschaftliche und politische Effekte der Osterweiterung auf die Einkommensverteilung in der EU," LIS Working papers 438, LIS Cross-National Data Center in Luxembourg.
    17. Onno Hoffmeister, 2006. "Inequality of Incomes on Both Sides of the Odra: The Contribution of the Regional Dimension," LIS Working papers 439, LIS Cross-National Data Center in Luxembourg.
    18. Andrea Brandolini, 2006. "Measurement of Income Distribution in Supranational Entities: The Case of the European Union," LIS Working papers 452, LIS Cross-National Data Center in Luxembourg.
    19. Alvaro Forteza & Ianina Rossi, 2009. "The contribution of government transfer programs to inequality. A net-benefit approach," Journal of Applied Economics, Universidad del CEMA, vol. 12, pages 55-67, May.
    20. Richard V. Burkhauser, 2008. "Creating an EU Flexicurity System: An American Perspective," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(4), pages 36-40, December.
    21. repec:bla:ausecp:v:56:y:2017:i:1:p:59-71 is not listed on IDEAS
    22. Birgit Kuchler & Jan Goebel, 2003. "Smoothed Income Poverty in European Countries," Discussion Papers of DIW Berlin 352, DIW Berlin, German Institute for Economic Research.
    23. Bea Cantillon & Karel van den Bosch & Ive Marx, 2002. "The Puzzle of Egalitarianism: About the Relationships between Employment, Wage Inequality, Social Expenditures and Poverty," LIS Working papers 337, LIS Cross-National Data Center in Luxembourg.

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