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Measuring Bipolarization, Inequality, Welfare and Poverty

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  • Juan Gabriel Rodríguez

    (Universidad Rey Juan Carlos)

Abstract

This paper analyzes the relationship between bipolarization and inequality, welfare and poverty measures. First, we clarify the similarities and differences between bipolarization and inequality measures. Second, it is shown that bipolarization is the difference between the welfare levels of the richer and poorer income groups when feelings of identification between individuals are based on their utility functions. In fact, bipolarization is interpreted as the welfare of the richer group that is wasted to compensate for income bipolarization. Third, a relationship between bipolarization measurement and the normalized poverty deficit index is established. These findings are applied to the polarization measures of Wolfson (1994), Esteban and Ray (1994) and Lasso de la Vega and Urrutia (2006).

Suggested Citation

  • Juan Gabriel Rodríguez, 2006. "Measuring Bipolarization, Inequality, Welfare and Poverty," Working Papers 39, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2006-39
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-39.pdf
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    References listed on IDEAS

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    Cited by:

    1. Abdelkrim Araar, 2008. "Social Classes, Inequality and Redistributive Policies in Canada," Cahiers de recherche 0817, CIRPEE.
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    3. C. Chameni Nembua, 2012. "On a class of bi-polarization variance-based measurement: evidence from Cameroonian data," Applied Economics Letters, Taylor & Francis Journals, vol. 19(13), pages 1311-1317, September.
    4. Luis Huesca Reynoso & Abdelkrim Araar, 2016. "Comparison of fiscal system progressivity over time: theory and application in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(1), pages 3-45.

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    More about this item

    Keywords

    bipolarization; inequality; welfare; poverty.;
    All these keywords.

    JEL classification:

    • D39 - Microeconomics - - Distribution - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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