Country inequality rankings and conversion schemes

Carsten Schröder and Timm Bönke

No 2012-7, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: 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, the authors 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 the 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)
Date: 2012
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Citations: View citations in EconPapers (8)

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https://www.econstor.eu/bitstream/10419/54944/1/683206249.pdf (application/pdf)

Related works:
Journal Article: Country inequality rankings and conversion schemes (2012)
Working Paper: Country Inequality Rankings and Conversion Schemes (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:20127

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