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Relative Income Changes and an Identification of Growth Pattern

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  • Marek Kośny

    () (Wroclaw University of Economics)

Abstract

The paper proposes a method of identification of a growth pattern by analyzing the direct relation between income (or some other measure of wealth) of the poorer and of the richer. To this end the basic idea underlying Zenga’s concept of inequality measurement is applied. The proposed relative income change measures allude to the intuitive concept of the proportion of two averages: upper and lower – with respect to a given quantile of the income distribution. In this sense it directly refers to the relation of the poor and the non-poor. The relative income change measure is then applied to the analysis of income growth pattern in selected countries, using the data from Luxembourg Income Study Database.

Suggested Citation

  • Marek Kośny, 2012. "Relative Income Changes and an Identification of Growth Pattern," Working Papers 268, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2012-268
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-268.pdf
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    References listed on IDEAS

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    1. Silber, Jacques & Verme, Paolo, 2012. "Relative deprivation, reference groups and the assessment of standard of living," Economic Systems, Elsevier, vol. 36(1), pages 31-45.
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    13. Bossert, Walter & D'Ambrosio, Conchita, 2006. "Reference groups and individual deprivation," Economics Letters, Elsevier, vol. 90(3), pages 421-426, March.
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    More about this item

    Keywords

    growth pattern; income distribution; pro-poor growth;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions

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