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The individual contribution to income inequality: conceptual analysis and empirical investigation

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  • Martino, Gaetano
  • Polinori, Paolo

Abstract

The paper aims to study individual contributions to income inequality. The role of individual positions in the analysis of inequality is considered at various levels. The utility of inequality analysis in analysing the variation across a given income distribution is also recognised. The paper elaborates on this perspective and proposes a definition of individual contributions to inequality within a given income distribution. The concept of such an individual contribution is proposed, and its properties are discussed. The paper presents and tests the hypothesis that given the concept of individual contributions, patterns of influence associated with the determinants of inequality can be identified across a given income distribution. An empirical method of investigation and testing is proposed based on the Survey on Household Income and Wealth carried out by the Bank of Italy. The results support the hypothesis and show that the patterns identified are useful in the analysis of inequality.

Suggested Citation

  • Martino, Gaetano & Polinori, Paolo, 2010. "The individual contribution to income inequality: conceptual analysis and empirical investigation," MPRA Paper 34365, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34365
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    References listed on IDEAS

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    More about this item

    Keywords

    Inequality; person-by-person perspective; quantile regression;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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