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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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    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. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Oxford University Press, vol. 47(3), pages 521-531.
    3. 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.
    4. Theil, Henri, 1979. "The measurement of inequality by components of income," Economics Letters, Elsevier, vol. 2(2), pages 197-199.
    5. Theil, Henri, 1989. "The development of international inequality 1960-1985," Journal of Econometrics, Elsevier, vol. 42(1), pages 145-155, September.
    6. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    7. 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. "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.

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