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Measuring Income Inequality in Euroland

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  • Beblo, Miriam

    (Centre for European Economic Research, Mannheim, Germany)

  • Knaus, Thomas

    (Free University of Berlin, Germany)

Abstract

In this paper we propose an aggregate measure of income inequality for the founding countries of the European monetary union. Applying the methodology of the Theil index we are able to derive a measure for Euroland as a whole by exploiting information from two data sets: the European Community Household Panel and the Luxembourg Income Study. The property of additive decomposability allows us to determine each country's contribution as well as that of each demographic group to overall income inequality. In addition the impact of government transfers on this inequality measure is assessed.

Suggested Citation

  • Beblo, Miriam & Knaus, Thomas, 2000. "Measuring Income Inequality in Euroland," IRISS Working Paper Series 2000-10, IRISS at CEPS/INSTEAD.
  • Handle: RePEc:irs:iriswp:2000-10
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    References listed on IDEAS

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    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. Theil, Henri, 1979. "The measurement of inequality by components of income," Economics Letters, Elsevier, vol. 2(2), pages 197-199.
    3. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    4. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Oxford University Press, vol. 47(3), pages 521-531.
    5. Kraus, Margit, 2000. "Social security strategies and redistributive effects in European social transfer systems," ZEW Discussion Papers 00-40, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Berry, Albert & Bourguignon, Francois & Morrisson, Christian, 1983. "The Level of World Inequality: How Much Can One Say?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 29(3), pages 217-241, September.
    7. Atkinson, A B, 1996. "Income Distribution in Europe and the United States," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 15-28, Spring.
    8. Atkinson, A.B., 1995. "Income Distribution in Europe and United States," Economics Papers 103, Economics Group, Nuffield College, University of Oxford.
    9. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
    10. Theil, Henri & Theil, Henri, 1979. "World income inequality and its components," Economics Letters, Elsevier, vol. 2(1), pages 99-102.
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    Cited by:

    1. Timothy M Smeeding, 2002. "Globalisation, Inequality and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS)," RBA Annual Conference Volume,in: David Gruen & Terry O'Brien & Jeremy Lawson (ed.), Globalisation, Living Standards and Inequality: Recent Progress and Continuing Challenges Reserve Bank of Australia.
    2. Timothy M. Smeeding, 2002. "Globalization, Inequality, and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS)," Center for Policy Research Working Papers 48, Center for Policy Research, Maxwell School, Syracuse University.
    3. Bachmann, Ronald & Bauer, Thomas K. & Kröger, Hanna & Schaffner, Sandra & Schmidt, Christoph M., 2012. "Tarifsystem stabilisieren: Drucksache 17/8148. Stellungnahme zur Anhörung des Ausschusses für Arbeit und Soziales des Deutschen Bundestages am 6. Februar 2012," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72592.
    4. Hofer, Helmut & Weber, Andrea, 2002. "Wage mobility in Austria 1986-1996," Labour Economics, Elsevier, vol. 9(4), pages 563-577, September.
    5. Juan Ramón García, "undated". "La desigualdad salarial en España. Efectos de un diseño muestral complejo," Working Papers 2003-26, FEDEA.
    6. Bachmann, Ronald & Bauer, Thomas K. & Kröger, Hanna & Schaffner, Sandra & Schmidt, Christoph M., 2012. "Tarifvertragssystem stärken - Allgemeinverbindliche Tariflöhne und branchenspezifische Mindestlöhne erleichtern. Stellungnahme zur Anhörung des Ausschusses für Arbeit und Soziales des Deutschen Bundes," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72615.

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