Inequality Generating Processes and Measurement of the Matthew Effect

Miia Bask and Mikael Bask

No 2010:19, Working Paper Series from Uppsala University, Department of Economics

Abstract: The first aim of this paper is to clarify the differences and relationships between cumulative advantage/disadvantage and the Matthew effect. Its second aim, which is also its main contribution, is not only to present a new measure of the Matthew effect, but also to show how to estimate this effect from data and how to make statistical inference. We argue that one should utilize the positivity of the natural logarithm of the largest generalized eigenvalue for a non-linear dynamic process as evidence when claiming that the Matthew effect is present in the dynamic process that generates individuals’ socio-economic life-courses. Thus, our measure of the Matthew effect focuses on the dynamic process that generates socio-economic inequality and not on the outcome of this process.

Keywords: Cumulative advantage; cumulative disadvantage; dynamic process; inequality; inter-individual change; intra-individual change; life-course; Matthew effect; socio-economic status (search for similar items in EconPapers)
JEL-codes: C02 D63 I31 Z13 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2010-10-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:2010_019

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