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Inequality and Social Welfare

Author

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  • Wodon, Quentin
  • Yitzhaki, Shlomo

Abstract

This paper provides a review of part of the literature on inequality and social welfare, with a special focus on the Gini index. The paper first presents the extended Gini index used for measuring inequality, as well as the source decomposition of the Gini used to analyze how changes in income and consumption sources affect overall inequality. The paper then provides a wide range of policy applications of the source decomposition of the extended Gini index, including techniques for analyzing the impact on inequality of the targeting of programs as opposed to the rules for the allocation of benefits among program participants.

Suggested Citation

  • Wodon, Quentin & Yitzhaki, Shlomo, 2002. "Inequality and Social Welfare," MPRA Paper 12298, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12298
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    File URL: https://mpra.ub.uni-muenchen.de/12298/1/MPRA_paper_12298.pdf
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    References listed on IDEAS

    as
    1. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
    2. Donaldson, David & Weymark, John A., 1983. "Ethically flexible gini indices for income distributions in the continuum," Journal of Economic Theory, Elsevier, vol. 29(2), pages 353-358, April.
    3. Woden, Q.T. & Ayres, W. & Barenstein, M. & Hicks, N. & Lee, K. & Maloney, W. & Peeters, P. & Siaens, C. & Yitzjaki, S., 2000. "Poverty and Policy in Latin America and Caribeean," Papers 467, World Bank - Technical Papers.
    4. Yitzhaki, Shlomo, 1982. "Relative deprivation and economic welfare," European Economic Review, Elsevier, vol. 17(1), pages 99-113.
    5. Shlomo Yitzhaki, 2001. "A Public Finance Approach to Assessing Poverty Alleviation," NBER Working Papers 8062, National Bureau of Economic Research, Inc.
    6. Amartya Sen, 1976. "Real National Income," Review of Economic Studies, Oxford University Press, vol. 43(1), pages 19-39.
    7. Garner, Thesia I, 1993. "Consumer Expenditures and Inequality: An Analysis Based on Decomposition of the Gini Coefficient," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 134-138, February.
    8. Robert I. Lerman & Shlomo Yitzhaki, 1994. "Effect of Marginal Changes in Income Sources On U.S. Income Inequality," Public Finance Review, , vol. 22(4), pages 403-417, October.
    9. Wodon, Quentin & Velez, Eduardo, 2001. "Poverty and Inequality," MPRA Paper 12307, University Library of Munich, Germany.
    10. Louise Cord & Quentin Wodon, 2001. "Do Agricultural Programs in Mexico Alleviate Poverty? Evidence from the Ejido Sector," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 239-256.
    11. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
    12. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    13. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    14. Quentin Wodon & Shlomo Yitzhaki, 2002. "Evaluating the Impact of Government Programs on Social Welfare: The Role of Targeting and the Allocation Rules Among Program Beneficiaries," Public Finance Review, , vol. 30(2), pages 102-123, March.
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    Citations

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    Cited by:

    1. López-Feldman, Alejandro, 2014. "Shocks, Income and Wealth: Do They Affect the Extraction of Natural Resources by Rural Households?," World Development, Elsevier, vol. 64(S1), pages 91-100.
    2. Wodon, Quentin & Velez, Eduardo, 2001. "Poverty and Inequality," MPRA Paper 12307, University Library of Munich, Germany.
    3. C. Mark Blackden & Quentin Wodon, 2006. "Gender, Time Use, and Poverty in Sub-Saharan Africa," World Bank Publications, The World Bank, number 7214, April.
    4. Wodon, Quentin & Yitzhaki, Shlomo, 2003. "The effect of using grouped data on the estimation of the Gini income elasticity," Economics Letters, Elsevier, vol. 78(2), pages 153-159, February.
    5. Mishra, Ashok & El-Osta, Hisham & Gillespie, Jeffrey M., 2009. "Effect of agricultural policy on regional income inequality among farm households," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 325-340, May.
    6. Oscar J. Cárdenas-Rodríguez & Gabriel González-König & Diana Ojeda-Revah & Quentin Wodon, 2004. "Do indigenous peoples benefit from poverty programs? Evidence from Mexico´s 2000 census," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 19(1), pages 125-135.
    7. Alejandro López-Feldman, 2012. "Environmental Dependence of Mexican Rural Households: Exploring the Role of Income, Shocks, Rules and Roads," Working papers DTE 528, CIDE, División de Economía.
    8. World Bank Group, 2017. "Republic of Congo Poverty Assessment Report," World Bank Other Operational Studies 28302, The World Bank.
    9. Estache, Antonio & Foster, Vivien & Wodon, Quentin, 2002. "Making infrastructure reform in Latin America work for the poor," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    10. Damien Agobdji & Kokou Amouzouvi & Kname Bouare & Idrissa Diagne & Aristide Kielem, 2013. "Analyse de l’impact de la hausse mondiale des prix et des politiques de réponse du gouvernment sur la pauvreté," Working Papers PMMA 2013-10, PEP-PMMA.
    11. Wodon, Quentin & Lopez-Acevedo, Gladys & Siaens, Corinne, 2003. "Poverty in Mexico's Southern States," MPRA Paper 10578, University Library of Munich, Germany.
    12. L Pez-Feldman, Alejandro & Mora, Jorge & Taylor, J. Edward, 2007. "Does natural resource extraction mitigate poverty and inequality? Evidence from rural Mexico and a Lacandona Rainforest Community," Environment and Development Economics, Cambridge University Press, vol. 12(02), pages 251-269, April.
    13. Zdeňka Malá & Gabriela Červená, 2012. "Relation And Development Of Expenditure Inequality And Income Inequality Of Czech Households," Economic Annals, Faculty of Economics, University of Belgrade, vol. 57(192), pages 55-78, January –.
    14. Quentin Wodon, 2012. "Improving the Targeting of Social Programs in Ghana," World Bank Publications, The World Bank, number 13082, April.
    15. E. Schechtman & S. Yitzhaki, 2003. "A Family of Correlation Coefficients Based on the Extended Gini Index," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(2), pages 129-146, August.
    16. Wodon, Quentin, 2001. "Government Programs and Poverty," MPRA Paper 12308, University Library of Munich, Germany.
    17. Ayal Kimhi & Moran Sandel, 2011. "Religious Schooling, Secular Schooling, and Household Income Inequality in Israel," Working Papers 29, AlmaLaurea Inter-University Consortium.
    18. Ajwad, Mohamed Ishan & Wodon, Quentin, 2002. "Who Benefits from Increased Access to Public Services at the Local Level? A Marginal Benefit Incidence Analysis for Education and Basic Infrastructure," MPRA Paper 12309, University Library of Munich, Germany.
    19. Alderman, Harold & Behrman, Jere R. & Tasneem, Afia, 2015. "The contribution of increased equity to the estimated social benefits from a transfer program: An illustration from PROGRESA:," IFPRI discussion papers 1475, International Food Policy Research Institute (IFPRI).
    20. Siaens, Corinne & Subbarao, K. & Wodon, Quentin, 2006. "Assessing the Welfare of Orphans in Rwanda: Poverty, Work, Schooling, and Health," MPRA Paper 11085, University Library of Munich, Germany.

    More about this item

    Keywords

    Inequality; Social welfare;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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