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Measuring inequality of well-being with a correlation-sensitive multidimensional Gini index

  • Koen Decancq

    ()

    (Katholieke Universiteit Leuven)

  • María Ana Lugo

    ()

    (University of Oxford)

We propose to measure inequality of well-being with a multidimensional generalization of the Gini coefficient. We derive two inequality indices from their underlying social evaluation functions. These functions are conceived as a double aggregation functions: one across the dimensions of well-being, and another across the individuals. They differ only with respect to the sequencing of aggregations. We argue that the sequencing that does not exclude the Gini index to be sensitive to the correlation between the dimensions is more attractive. We illustrate both Gini indices using Russian household data on three dimensions of well-being: expenditure, health and education.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-124.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 124.

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Length: 38 pages
Date of creation: 2009
Handle: RePEc:inq:inqwps:ecineq2009-124
Contact details of provider: Web page: http://www.ecineq.org
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