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Drivers of Inequality and Poverty in the CEE and other EU Member States

Author

Listed:
  • Sebastian Leitner

    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

Inequality is a multidimensional phenomenon though it is often discussed along a single dimension such as income. This is also the case for the various decomposition approaches of inequality indices by recipients or income sources. In this paper we study one- and multidimensional indices on inequality on data for CEE EU Member States in comparison to other EU countries including four dimensions in our measure of multidimensional inequality income, health, education, and housing, and apply various decomposition methods to these one- and multidimensional indices and also to a poverty index. In doing so, we apply standard decomposition techniques to the Mean logarithmic deviation index (I₀) and decompositions based on regression analysis in conjunction with the Shapley value approach to Gini indices.

Suggested Citation

  • Sebastian Leitner & Robert Stehrer, 2014. "Drivers of Inequality and Poverty in the CEE and other EU Member States," wiiw Research Reports 398, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:rpaper:rr:398
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    References listed on IDEAS

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    1. Guanghua Wan, 2002. "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure," WIDER Working Paper Series DP2002-101, World Institute for Development Economic Research (UNU-WIDER).
    2. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    3. Vasco Molini & Guanghua Wan, 2008. "Discovering sources of inequality in transition economies: a case study of rural Vietnam," Economic Change and Restructuring, Springer, vol. 41(1), pages 75-96, March.
    4. Ernesto Savaglio, 2006. "Multidimensional inequality with variable population size," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(1), pages 85-94, May.
    5. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    6. Wan, Guanghua, 2004. "Accounting for income inequality in rural China: a regression-based approach," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 348-363, June.
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    Cited by:

    1. Sebastian Leitner, 2018. "Factors Driving Wealth Inequality in European Countries," wiiw Working Papers 155, The Vienna Institute for International Economic Studies, wiiw.
    2. Anton Michálek & Ján Výbošťok, 2019. "Economic Growth, Inequality and Poverty in the EU," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 611-630, January.
    3. Sebastian Leitner, 2015. "Drivers of wealth inequality in euro area countries," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 137, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.

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    Keywords

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    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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