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Income Inequality Indices Interpreted as Measures of Relative Deprivation/Satisfaction

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  • Luis Imedio-Olmedo
  • Encarnación Parrado-Gallardo
  • Elena Bárcena-Martín

Abstract

This paper considers different ways of making comparisons between individuals in terms of deprivation and/or satisfaction. This allows the Gini index, the Bonferroni index and the De Vergottini index to be interpreted as social deprivation measures as well as social satisfaction measures. The inequality measures that belong to the β family, or linear combinations of them, are obtained when using different weighting schemes to average the deprivation and satisfaction associated with each income level. Particularly, the generalised Gini indices (Yitzhaki, Int Econ Rev 24:617–628 in 1983 ), the indices proposed by Aaberge (J Econ Inequal 5(3):305–322, 2007 ) or those proposed by Imedio-Olmedo et al. (J Public Econ Theory 13(1):97–124, 2011 ) can be used to evaluate social deprivation or social satisfaction in an income distribution. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Luis Imedio-Olmedo & Encarnación Parrado-Gallardo & Elena Bárcena-Martín, 2012. "Income Inequality Indices Interpreted as Measures of Relative Deprivation/Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 109(3), pages 471-491, December.
    • Handle: RePEc:spr:soinre:v:109:y:2012:i:3:p:471-491
    DOI: 10.1007/s11205-011-9912-8
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    Cited by:

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    2. Monti Maria Giovanna & Pellegrino Simone & Vernizzi Achille, 2024. "The Zenga Index Reveals More Than the Gini and the Bonferroni Indexes. An Analysis of Distributional Changes and Social Welfare Levels," Working papers 084, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    3. Lucio Bertoli-Barsotti & Marek Gagolewski & Grzegorz Siudem & Barbara .Zoga{l}a-Siudem, 2023. "Equivalence of inequality indices: Three dimensions of impact revisited," Papers 2304.07479, arXiv.org.
    4. Elena Bárcena-Martín & Cortés Aguilar Alexandra & Ana I. Moro Egido, 2013. "The role of proximity and social comparisons on subjective well-being," ThE Papers 13/10, Department of Economic Theory and Economic History of the University of Granada..
    5. Edward Anderson & Lucio Esposito, 2014. "On the joint evaluation of absolute and relative deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 411-428, September.
    6. Iddo Eliazar & Giovanni M. Giorgi, 2020. "From Gini to Bonferroni to Tsallis: an inequality-indices trek," METRON, Springer;Sapienza Università di Roma, vol. 78(2), pages 119-153, August.

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