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Measuring Income Inequality in Euroland

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  • Thomas Knaus
  • Miriam Beblo

Abstract

In this paper we propose an aggregate measure of income inequality for all 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 of two data sets, the European Community Household Panel and the Luxembourg Income Study. The property of additive decomposability further allows us to determine each countrys contribution and that of each demographic group to overall income inequality.

Suggested Citation

  • Thomas Knaus & Miriam Beblo, 2000. "Measuring Income Inequality in Euroland," LIS Working papers 232, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:232
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    1. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 521-531.
    2. Berry, Albert & Bourguignon, Francois & Morrisson, Christian, 1983. "Changes in the World Distribution of Income between 1950 and 1977," Economic Journal, Royal Economic Society, vol. 93(37), pages 331-350, June.
    3. Theil, Henri, 1989. "The development of international inequality 1960-1985," Journal of Econometrics, Elsevier, vol. 42(1), pages 145-155, September.
    4. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    5. Lee Rainwater & Timothy Smeeding, 1995. "Doing Poorly: The Real Income of American Children in a Comparative Perspective," LIS Working papers 127, LIS Cross-National Data Center in Luxembourg.
    6. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    7. Kraus, Margit, 2000. "Social security strategies and redistributive effects in European social transfer systems," ZEW Discussion Papers 00-40, ZEW - Leibniz Centre for European Economic Research.
    8. Theil, Henri, 1979. "The measurement of inequality by components of income," Economics Letters, Elsevier, vol. 2(2), pages 197-199.
    9. 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. Michael Förster & Timothy Smeeding & David Jesuit, 2002. "Regional Poverty and Income Inequality in Central and Eastern Europe: Evidence from the Luxembourg Income Study," LIS Working papers 324, LIS Cross-National Data Center in Luxembourg.
    2. Olli Kangas & Veli-Matti Ritakallio, 2004. "Relative to What? Cross-national Picture of European Poverty Measured by Regional, National and European Standards," LIS Working papers 384, LIS Cross-National Data Center in Luxembourg.
    3. 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.
    4. 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.
    5. Hofer, Helmut & Weber, Andrea, 2002. "Wage mobility in Austria 1986-1996," Labour Economics, Elsevier, vol. 9(4), pages 563-577, September.
    6. Juan Ramón García, "undated". "La desigualdad salarial en España. Efectos de un diseño muestral complejo," Working Papers 2003-26, FEDEA.
    7. 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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