Country Inequality Rankings and Conversion Schemes
Timm Bönke () and
Carsten Schröder ()
No 1068, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research
Two conversion schemes are usually employed for assessing personal-income inequality from household equivalent incomes: to weight household units by size or by needs.Using data from the Luxembourg Income Study, we show the sensitivity of country inequality rankings to conversion schemes and explain the finding by means of inequality decomposition. A bootstrap approach is implemented to test for statistical significance of our results.
Keywords: inequality; equivalence scale; equivalent income; weighting scheme; decomposition (search for similar items in EconPapers)
JEL-codes: D31 D63 I32 (search for similar items in EconPapers)
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Journal Article: Country inequality rankings and conversion schemes (2012)
Working Paper: Country inequality rankings and conversion schemes (2012)
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Persistent link: http://EconPapers.repec.org/RePEc:diw:diwwpp:dp1068
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