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Effect of the rise of a person's income on inequality

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  • Hoffmann, Rodolfo

Abstract

If income distribution is unequal, the effect of a marginal increase in an income x on inequality is an increasing function of x. The present paper analyses this function for several inequality measures. The income for which the effect changes sign is the relative poverty line. The value of this limit between the relatively poor and the relatively rich is computed for Brazil and five regions, in 1999, considering two types of income distribution: the income of economically active persons and per capita family income. The paper also analyses the effect that a marginal increase in all incomes equal to or greater than x produces on inequality.

Suggested Citation

  • Hoffmann, Rodolfo, 2001. "Effect of the rise of a person's income on inequality," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 21(2), November.
    • Handle: RePEc:sbe:breart:v:21:y:2001:i:2:a:2751
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    Cited by:

    1. John Creedy, 2016. "Interpreting inequality measures and changes in inequality," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(2), pages 177-192, August.
    2. Casilda Lasso de la Vega & Christian Seidl, 2007. "The Impossibility of a Just Pigouvian," Working Papers 69, ECINEQ, Society for the Study of Economic Inequality.
    3. John Creedy, 2023. "Comparing Income Distributions Using Atkinson's Measure of Inequality," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(1), pages 141-155, March.
    4. Peter J. Lambert, 2014. "The Impact of a Marginal Subsidy on Gini Indices: Comment," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 604-605, September.
    5. Laurence S. J. Roope, 2019. "Characterizing inequality benchmark incomes," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(1), pages 131-145, May.
    6. Diego C. Botassio & Rodolfo Hoffmann, 2020. "Measuring gender segregation," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(1), pages 25-47, April.
    7. Guido Erreygers & Philip Clarke & Qiong Zheng, 2017. "On the measurement of socioeconomic inequality of health between countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(2), pages 175-193, June.
    8. Laurence S J Roope, 2021. "First estimates of inequality benchmark incomes for a range of countries," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-8, March.

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