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Country Inequality Rankings and Conversion Schemes


  • Timm Bönke
  • Carsten Schröder


Two conversion schemes are usually employed for assessing personal-income inequality from household equivalent incomes: to weight household units by size or by needs.Using data from the Luxembourg Income Study, we show the sensitivity of country inequality rankings to conversion schemes and explain the finding by means of inequality decomposition. A bootstrap approach is implemented to test for statistical significance of our results.

Suggested Citation

  • Timm Bönke & Carsten Schröder, 2010. "Country Inequality Rankings and Conversion Schemes," Discussion Papers of DIW Berlin 1068, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1068

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    Cited by:

    1. Karoly, Lynn & Schröder, Carsten, 2015. "Fast methods for jackknifing inequality indices," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 37(1), pages 125-138.
    2. Timm Bönke & Carsten Schröder, 2014. "European-Wide Inequality in Times of the Financial Crisis," Journal of Income Distribution, Journal of Income Distribution, vol. 23(3), pages 7-34, November.

    More about this item


    inequality; equivalence scale; equivalent income; weighting scheme; decomposition;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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