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An Integrated Approach for the Measurement of Inequality, Poverty and Richness

  • Nuno Crespo


    (ISCTE-IUL, Business School, Department of Economics and BRU-IUL)

  • Sandrina B. Moreira


    (Instituto Politécnico de Setúbal (ESCE - IPS), Department of Economics and Management and BRU-IUL)

  • Nádia Simões


    (ISCTE-IUL, Business School, Department of Economics and BRU-IUL)

We propose a new and integrated approach to the measurement of inequality in income distribution, poverty, and richness. In the context of the poverty and richness measures, we consider the three dimensions usually analysed – incidence, intensity, and severity. The proposed broad set of indicators is easy to calculate and is based on a neutral income inequality concept. The method also allows an objective interpretation of the values for each measure, a decomposition according to households’ characteristics, and an immediate comparison of the results between countries and time periods. We illustrate the application of the measures with data from Portugal.

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Paper provided by ISCTE-IUL, Business Research Unit (BRU-IUL) in its series Working Papers Series 2 with number 12-03.

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Length: 37 pages
Date of creation: 15 Jun 2012
Date of revision:
Handle: RePEc:isc:iscwp2:bruwp1203
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  16. Anthony B. Atkinson & Andrea Brandolini, 2011. "On the identification of the “middle class”," Working Papers 217, ECINEQ, Society for the Study of Economic Inequality.
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  26. Harrison, Elizabeth & Seidl, Christian, 1994. " Perceptional Inequality and Preferential Judgements: An Empirical Examination of Distributional Axioms," Public Choice, Springer, vol. 79(1-2), pages 61-81, April.
  27. Magdalou, Brice & Nock, Richard, 2011. "Income distributions and decomposable divergence measures," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2440-2454.
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