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The evolution of World inequality in Well-being

  • Koen Decancq
  • André Decoster
  • Erik Schokkaert

In this paper we investigate the evolution of the inequality in well-being across different countries between 1975 and 2000. We treat well-being as a multidimensional concept focusing on three important dimensions of life: standard of living, health and education. Inequality in the three dimensions shows a different trend between 1975 and 2000. We propose a flexible measure of well-being and use the tools offered by the recent literature on multidimensional inequality measurement to quantify the evolution of overall intercountry well-being inequality. The empirical results are nuanced, and sensitive to different normative choices on the trade-offs between the different dimensions. In particular the concave transformation of income turns out to be decisive for the evolution of world inequality in well-being.

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File URL: http://www.econ.kuleuven.be/eng/ew/discussionpapers/Dps07/Dps0704.pdf
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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0704.

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Date of creation: Mar 2007
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Handle: RePEc:ete:ceswps:ces0704
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