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Measuring polarization via poverty and affluence

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  • Scheicher, Christoph

Abstract

The decline of the middle class has been investigated as a principal aspect of social polarization (Wolfson 1994, 1997). Wang and Tsui 2000 have characterized a class of polarization measures by postulates on normalization, increasing spread and increasing bipolarity. The present paper generalizes this class of measures. It defines polarization by aggregating measures of poverty and of affluence, focussing on incomes outside a middle class interval. The approach is applied to German data on income distribution.

Suggested Citation

  • Scheicher, Christoph, 2008. "Measuring polarization via poverty and affluence," Discussion Papers in Econometrics and Statistics 3/08, University of Cologne, Institute of Econometrics and Statistics.
  • Handle: RePEc:zbw:ucdpse:308
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    References listed on IDEAS

    as
    1. Andrew J. Patton, 2004. "On the Out-of-Sample Importance of Skewness and Asymmetric Dependence for Asset Allocation," Journal of Financial Econometrics, Society for Financial Econometrics, vol. 2(1), pages 130-168.
    2. Fortin, Ines & Kuzmics, Christoph, 2002. "Tail-Dependence in Stock-Return Pairs," Economics Series 126, Institute for Advanced Studies.
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    More about this item

    Keywords

    decline of middle class; income distribution; income richness;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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