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Income Polarization In Romania

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  • Molnar, Maria

    () (Institute of National Economy – Romanian Academy)

Abstract

This article presents the results of a study devoted to the measurement of the income polarization in Romania. In the first part the key methodological issues of measuring polarization are addressed, with emphasis on the polarization indices. To measure the polarization of the household incomes in Romania, which is the subject of the second part of the study, several indices of bipolarization (Foster-Wolfson, Wang-Tsui, Milanovi􀃾, Esteban-Ray and Esteban-Gradin-Ray indices) and group polarization (Esteban-Ray and Gradin indices) have been used. All indicators show a higher degree of polarization in 2008 as compared with 1995 and 2000.

Suggested Citation

  • Molnar, Maria, 2011. "Income Polarization In Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 64-83, June.
  • Handle: RePEc:rjr:romjef:v::y:2011:i:2:p:64-83
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    References listed on IDEAS

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    1. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November.
    2. Wang, You-Qiang & Tsui, Kai-Yuen, 2000. " Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363.
    3. Damien Échevin & Antoine Parent, 2002. "Les indicateurs de polarisation et leur application à la France," Economie & Prévision, La Documentation Française, vol. 155(4), pages 13-30.
    4. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    5. Voinea, Liviu & Mihaescu, Flaviu, 2009. "The Impact of the Flat Tax Reform on Inequality - the case of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 19-41, December.
    6. Stefananescu, Stefan, 2008. "Measuring the Socio-Economic Bipolarization Phenomenon," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(1), pages 149-161, March.
    7. Joan Esteban & Carlos Gradín & Debraj Ray, 2007. "An Extension of a Measure of Polarization, with an application to the income distribution of five OECD countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(1), pages 1-19, April.
    8. Easterly, William, 2001. "The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-335, December.
    9. Molnar, Maria, 2010. "Income distribution in Romania," MPRA Paper 30062, University Library of Munich, Germany.
    10. James Foster & Michael Wolfson, 2010. "Polarization and the decline of the middle class: Canada and the U.S," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 247-273, June.
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    Citations

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    Cited by:

    1. Oancea, Bogdan & Andrei, Tudorel & Pirjol, Dan, 2017. "Income inequality in Romania: The exponential-Pareto distribution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 469(C), pages 486-498.
    2. Brad, Anca Maria, 2012. "The impact of tax policy on the welfare state," MPRA Paper 40347, University Library of Munich, Germany.
    3. Tudorel Andrei & Bogdan Oancea & Peter Richmond & Gurjeet Dhesi & Claudiu Herteliu, 2017. "Decomposition of the Inequality of Income Distribution by Income Types - Application for Romania," Papers 1709.07960, arXiv.org.

    More about this item

    Keywords

    bipolarization; group polarization; income redistribution; disposable income;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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