Losing ground in the income hierarchy: relative deprivation revisited

Walter Bossert and Conchita D’Ambrosio ()
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Conchita D’Ambrosio: University of Luxembourg
Authors registered in the RePEc Author Service: Conchita D'Ambrosio

The Journal of Economic Inequality, 2020, vol. 18, issue 1, No 1, 12 pages

Abstract: Abstract The paper discusses a one-parameter generalization of individual relative deprivation measures to a two-period setting that differs from earlier approaches. The parameter is, by definition, independent of the income distributions under consideration—it is to be chosen by a social planner. Its value has an intuitive interpretation: it represents the additional weight assigned to the income shortfalls associated with agents who passed the individual in question when moving from yesterday’s income distribution to today’s. Therefore, the choice of this parameter represents an important value judgment on the part of a social planner regarding the relative impact of being left behind. As a special case, it is illustrated how the well-known Yitzhaki index can be extended to this environment. Journal of Economic Literature Classification No.: D63.

Keywords: Relative deprivation; Equity; Individual Well-Being (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10888-019-09428-4

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