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The evolution of World inequality in Well-being

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  • Koen Decancq
  • André Decoster
  • Erik Schokkaert

Abstract

In this paper we investigate the evolution of the inequality in well-being across different countries between 1975 and 2000. We treat well-being as a multidimensional concept focusing on three important dimensions of life: standard of living, health and education. Inequality in the three dimensions shows a different trend between 1975 and 2000. We propose a flexible measure of well-being and use the tools offered by the recent literature on multidimensional inequality measurement to quantify the evolution of overall intercountry well-being inequality. The empirical results are nuanced, and sensitive to different normative choices on the trade-offs between the different dimensions. In particular the concave transformation of income turns out to be decisive for the evolution of world inequality in well-being.

Suggested Citation

  • Koen Decancq & André Decoster & Erik Schokkaert, 2007. "The evolution of World inequality in Well-being," Working Papers of Department of Economics, Leuven ces0704, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:ces0704
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    More about this item

    Keywords

    Multidimensional Inequality Measurement; Index of Well-being; Inter-country Inequality.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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