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Statistical Measurement of Income Polarization. A cross-national comparison

Author

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  • Axel Schmidt

    (Seminar of Economic and Social Statistics, University of Cologne)

Abstract

While recent research on income polarization is based on only a few approaches, this paper portrays the major methods and applies each to income distributions of Germany (1984-2000) and the US (1984-1997) using the Cross-National Equivalent Files. In addition, statistical inference is provided via bootstrap techniques. Further, we combine kernel density estimation with a unimodality test. The empirical results reveal increasing polarization and inequality in the US while the corresponding figures remain almost constant for Germany.

Suggested Citation

  • Axel Schmidt, 2002. "Statistical Measurement of Income Polarization. A cross-national comparison," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D3-1, International Conferences on Panel Data.
    • Handle: RePEc:cpd:pd2002:d3-1
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    References listed on IDEAS

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    1. 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.
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    6. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
    7. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    8. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-150, March-Apr.
    9. Conchita D’ambrosio, 2001. "Household Characteristics and the Distribution of Income In Italy: An Application of Social Distance Measures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 43-64, March.
    10. SOEP Group, 2001. "The German Socio-Economic Panel (GSOEP) after More than 15 Years: Overview," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 7-14.
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    Cited by:

    1. Ilaria Petrarca & Roberto Ricciuti, 2015. "Relative income distribution in six European countries: market and disposable income," LIS Working papers 629, LIS Cross-National Data Center in Luxembourg.

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    Keywords

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    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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