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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Nuno Crespo & Sandrina B. Moreira & Nádia Simões, 2012. "An Integrated Approach for the Measurement of Inequality, Poverty and Richness," Working Papers Series 2 12-03, ISCTE-IUL, Business Research Unit (BRU-IUL).
    • Handle: RePEc:isc:iscwp2:bruwp1203
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    References listed on IDEAS

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    More about this item

    Keywords

    Income Inequality; Poverty; Richness; Measurement;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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