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An Integrated Approach for the Measurement of Inequality, Poverty and Richness

Nuno Crespo (), Sandrina Berthault Moreira () and Nadia Simoes ()

No 12-03, Working Papers Series 2 from ISCTE-IUL, Business Research Unit (BRU-IUL)

Abstract: We propose a new and integrated approach to the measurement of inequality in income distribution, poverty, and richness. In the context of the poverty and richness measures, we consider the three dimensions usually analysed – incidence, intensity, and severity. The proposed broad set of indicators is easy to calculate and is based on a neutral income inequality concept. The method also allows an objective interpretation of the values for each measure, a decomposition according to households’ characteristics, and an immediate comparison of the results between countries and time periods. We illustrate the application of the measures with data from Portugal.

Keywords: Income Inequality; Poverty; Richness; Measurement (search for similar items in EconPapers)
JEL-codes: D30 D31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ltv
Date: 2012-06-15
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Working Paper: An integrated approach for the measurement of inequality, poverty, and richness (2011) Downloads
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