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Can subjective data improve inequality measurement? A multidimensional index of economic inequality

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  • Poppitz, Philipp

Abstract

This work addresses the normative and empirical problems when measuring multidimensional inequality. In contrast to previous works, individuals’ perception of inequality is used to estimate a weights for five dimensions based on German microdata. Using the estimated hedonic weights, the results show that annual multidimensional economic inequality is lower than income inequality, but significantly higher than inequality based on equal weights and increases with greater substitution elasticity.

Suggested Citation

  • Poppitz, Philipp, 2017. "Can subjective data improve inequality measurement? A multidimensional index of economic inequality," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168252, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168252
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    Cited by:

    1. Philipp Poppitz, 2019. "Multidimensional Inequality and Divergence: The Eurozone Crisis in Retrospect," Working Papers V-420-19, University of Oldenburg, Department of Economics, revised Feb 2019.

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    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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