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The Evolution Of Income Inequality In The European Union

  • 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)

. 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.

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Paper provided by Instituto de Estudios Fiscales in its series Working Papers with number 10-02 Classification-JEL : D31, D63, F02, O52.

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Handle: RePEc:hpe:wpaper:y:2002:i:10
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  1. Jorge Onrubia & Rafael Salas & José Sanz, 2005. "Redistribution and labour supply," Journal of Economic Inequality, Springer, vol. 3(2), pages 109-124, August.
  2. Lluis Bru & Susana Cabrera & C. Mónica Capra & Rosario Gómez, . "Experimentos Secuenciales En La Gestión De Los Recursos Comunes," Working Papers 5-02 Classification-JEL :, Instituto de Estudios Fiscales.
  3. Luis Ayala & Rosa Martínez & Jesús Ruiz Huerta, 2003. "Equivalence scales in tax and transfer policies," Investigaciones Economicas, Fundación SEPI, vol. 27(3), pages 593-614, September.
  4. Juan Prieto-Rodríguez & Víctor Fernández-Blanco, 2006. "Optimal pricing and grant policies for museums," Journal of Cultural Economics, Springer, vol. 30(3), pages 169-181, December.
  5. Juan Gabriel Rodríguez & Rafael Salas, 2004. "A Bistochastic Nonparametric Estimator," Economic Working Papers at Centro de Estudios Andaluces E2004/22, Centro de Estudios Andaluces.
  6. Juan Prieto-Rodríguez & Rafael Salas & Santiago Álvarez-García, . "Movilidad Social Y Desigualdad Económica," Working Papers 7-02 Classification-JEL :, Instituto de Estudios Fiscales.
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