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The Evolution Of Income Inequality In The European Union

Author

Listed:
  • Juan Prieto-Rodríguez

    (Instituto de Estudios Fiscales y Universidad de Oviedo)

  • Rafael Salas

    (Instituto de Estudios Fiscales y Universidad Complutense de Madrid)

  • Santiago Álvarez-García

    (Instituto de Estudios Fiscales y Universidad de Oviedo)

Abstract

. The objective of this work is to analyse the income inequality in the 15 EU countries during the convergence process to the Monetary Union. Using the information contained in the European Community Household Panel, corresponding to the four first waves. Using the inverse second order stochastic dominance concept, we have carried out an ordering of these countries. Furthermore, this ranking allows us to determine if the differences among EU country members have increased or decreased during this particular period, that is, if there was a real convergence in income equality. In addition, we have also studied whether the inequality of income has diminished within and between countries over time. Gini's generalised family indices proposed by Donaldson and Weymark (1980 and 1983) and Yitzhaki (1983) have been used. This allows us to test the sensitivity of the results obtained to different degrees of inequality aversion and to different equivalence scales, taking into account household sizes.

Suggested Citation

  • Juan Prieto-Rodríguez & Rafael Salas & Santiago Álvarez-García, "undated". "The Evolution Of Income Inequality In The European Union," Working Papers 10-02 Classification-JEL , Instituto de Estudios Fiscales.
    • Handle: RePEc:hpe:wpaper:y:2002:i:10
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    Cited by:

    1. Van Ourti, Tom & van Doorslaer, Eddy & Koolman, Xander, 2009. "The effect of income growth and inequality on health inequality: Theory and empirical evidence from the European Panel," Journal of Health Economics, Elsevier, vol. 28(3), pages 525-539, May.
    2. Marta Pascual & David Cantarero & Jose Maria Sarabia, 2004. "Trends in income inequality in the European Union: implications for health inequalities," ERSA conference papers ersa04p304, European Regional Science Association.
    3. Croci Angelini, Elisabetta & Michelangeli, Alessandra, 2012. "Axiomatic measurement of multidimensional well-being inequality: Some distributional questions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 548-557.
    4. José Javier Núñez-Velázquez & Juana Domínguez-Domínguez, 2007. "A Proposal of a Synthetic Indicator to Measure Poverty Intensity, With an Application to EU-15 Countries," Working Papers 81, ECINEQ, Society for the Study of Economic Inequality.
    5. José María Sarabia & Marta Pascual & David Cantarero, 2003. "Income Inequality Rankings for Different Equivalence Scales and Population Health," ERSA conference papers ersa03p160, European Regional Science Association.
    6. Carlos Mulas-Granados, 2005. "Fiscal Adjustments and the Short-Term Trade-Off between economic growth and equality," Hacienda Pública Española / Review of Public Economics, IEF, vol. 172(1), pages 61-92, June.

    More about this item

    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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