Decomposition of Food Expenditure Inequality: An Application of the Extended Gini Coefficient to Greek Micro-Data

The principal purpose of this paper is to examine theeffects of 16 food items on the overall foodexpenditure inequality in Greece using the raw data ofFamily Budget Surveys conducted during 1987/88 and1993/94. The method employed was the decomposition ofthe extended Gini coefficient. According to theresults, taxing expenditure on food consumed away fromhome and on alcoholic drinks will improve thedistribution of food expenditure equality and willincrease the progressivity of the tax system.Subsidising the other food items will have the samebut more modest effect.     

Economic inequality and child stunting in Bangladesh and Kenya: an investigation of six hypotheses

Consistent with the increasing focus on issues of equity in developing countries, I extend the literature analyzing the relationship between economic inequality and individual health to the developing world. Using survey data from Bangladesh and Kenya with economic status measured by a wealth index and with three different geographic definitions of community, I analyze six competing hypotheses for how economic inequality may be related to stunting among children younger than 5 years old. I find little support for the predominant hypothesis that economic inequality as measured by a Gini index is an important predictor of individual health. Instead, I find that the difference between a household's wealth and the mean household wealth in the community is the measure of economic inequality that is most closely related to stunting in these countries. In particular, a 1 standard deviation increase in household wealth relative to the community mean is associated with a 30–32 percent decrease in the odds of stunting in Bangladesh and a 16–21 percent decrease in the odds of stunting in Kenya.     

收入差距对中国居民主观幸福感的影响分析——基于中国综合社会调查数据的实证研究

文章利用2006年中国综合社会调查数据,考察了收入差距对居民主观幸福感的影响。研究发现:收入差距对主观幸福感的影响呈倒U形,临界点在基尼系数为0.4,当基尼系数小于0.4时,居民的幸福感随着收入差距的扩大而增强;但超过0.4时,扩大的收入差距将导致居民幸福感的下降。随着收入差距的扩大,居住在城市、非农业户籍和受教育程度较高的居民,其幸福感更低。居民自认为收入所得不合理也会显著降低其幸福感。     

Measuring spatial focusing in a migration system

Equality indexes used in other geographical contexts may be used to gauge the degree of spatial focusing in an entire migration system or within the gross in- and out-migration fields of specific regions. They provide useful indicators of overall shifts in the patterns of interregional migration and can help give insight into the population redistributive roles played by specific regions. Perhaps the most common equality index used to measure income distribution is the Gini coefficient, yet it appears almost never to have been applied in migration research. In this paper we set forth a variety of Gini indexes to be used for different migration analyses and illustrate their application with recent data on U.S. interstate movements. We argue that the Gini index provides some singularly useful insights that differ from those afforded by other measures more commonly found to date in the migration analyst’ s toolkit.     

Change of Housing Inequality in Urban China and Its Decomposition: 1989–2011

Housing inequality is a common phenomenon all over the world but also demonstrate discrepant tinctures across different countries. Using the data from the China Health and Nutrition Surveys, we depict a comprehensive, dynamic, and complex picture of housing inequality in urban China from 1989 to 2011, with household as the unit of analysis. Analytic results from calculation of housing Gini coefficients and delineation of housing Lorenz curves suggest that the trend of housing space inequality was steady with a somewhat increase, while that of housing wealth inequality has firstly decreased and then increased. Through further decomposition on the change of housing inequality with a pioneering use of MM decomposition method, we find that the change of the composition of household characteristics only could explain few about the change of housing inequality, while the classification mechanism formed by returns from household characteristics plays a key role in both the change of housing space inequality and that of housing wealth inequality.

     

Analyzing the Effects of Negative and Non-negative Values on Income Inequality: Evidence from the Survey of Household Income and Wealth of the Bank of Italy (2012)

Generally, inequality indices play a basic role in the analysis of welfare economics, also appearing as technical tools applied to income data. A good deal of findings in this research field is provided by the Gini coefficient, typically used for non-negative income values. Even if negative income is often an unfamiliar concept, its presence in real surveys may lead to difficulty in applying the classical Gini-based inequality measures, as they lie outside their standard ranges. In this paper, the more general issue of negative values is considered and a reformulation of the main Gini-based inequality measures adjusted for the problem of negative values is adopted with the purpose of providing theoretical extensions for the income decomposition approach by both income sources and area components. Investigations about the related inferential issues, conducted thorough simulation studies based on resampling techniques, highlight how the traditional approach of removing negative income values may yield different results in terms of inequality estimation, proving that the proposed approach, based on preserving negative values, is the more appropriate practice to follow to avoid the loss of data that really provide a coherent picture of the inequality condition.     

Measurement of socio-economic inequality using the Life-Quality Index

As income inequality presents a narrow view of overall inequality prevailing in a society, the paper focuses on its much broader definition, referred to as socio-economic inequality, which considers the disparities in income as well as in mortality, and standard of living. The paper presents a new method for measuring the socio-economic inequality using a composite social indicator, Life-Quality Index, derived from two principal indicators of development, namely, the Real Gross Domestic Product per person and the life expectancy at birth. Income inequality and the associated life expectancy variations are integrated into a quality adjusted income (QAI), to account for the observed differentials in life-quality of various quintiles of the population. The Gini coefficient of the distribution of QAI is introduced as a measure of socio-econmic inequality. The proposed approach is illustrated using data on life expectancy of five income quintiles in urban Canada. It is found that the magnitude of inequality in Canada is higher than that reflected by the traditional measure, the Gini coefficient of income.     

Empirical indicators of educational equity and equality: A thai case study

The focus of this paper is social indicator reporting, not the development of scientific generalization. This social indicator analysis involves the development of an extensive set of empirical indicators to show the extent of equity and equality of education. Equity and equality are viewed as distinct concepts, each with its own indicators. The set of indicators proposed is applied to Thailand in a case study. Examples of indicators used are (1) the relationship between socioeconomic background and access to preschool education, (2) the relationship between provincial wealth and opportunities for upper primary education, (3) proportion of females in lower primary schools, and (4) degree of equality among provinces in grant per pupil in primary education. The discrepancy ratio is introduced as an indicator to standardize measures of inequality and inequity. This set of indicators shows moderate levels of inequality and inequity in Thailand, with the most serious problems at the preschool, secondary, and higher education levels. Empirical indicators of this type are viewed as critically necessary for governments everywhere to enable them to chart their progress toward greater equity and equality.     

Using census data to investigate trends in the distribution of education among individual persons

The Lorenz curve and the Gini coefficient of concentration are used as inequality indices to investigate trends in the distribution of years of schooling among individuals in Papua New Guinea. A useful technique is shown whereby, with suitably detailed census data, inferences can be made regarding inequality trends in education for the period from about forty to about ten years before the census. Educational inequality in Papua New Guinea is shown to have declined from about 1940 to about 1968. Non-census enrolment data from 1972 to 1983 indicate that this trend towards less inequality is not likely to have continued into the 1970s and 1980s, reflecting the emphasis in Papua New Guinea on post-primary expansion rather than primary expansion.     

Does National Income Inequality Affect Individuals’ Quality of Life in Europe? Inequality,Happiness, Finances,and Health

This paper analyses the effect of income inequality on Europeans’ quality of life, specifically on their overall well-being (happiness, life satisfaction), on their financial quality of life (satisfaction with standard of living, affordability of goods and services, subjective poverty), and on their health (self-rated health, satisfaction with health). The simple bivariate correlations of inequality with overall well-being, financial quality of life, and health are negative. But this is misleading because of the confounding effect of a key omitted variable, national economic development (GDP per capita): Unequal societies are on average much poorer (r = 0.46) and so disadvantaged because of that. We analyse the multi-level European Quality of Life survey conducted in 2003 including national-level data on inequality (Gini coefficient) and economic development (GDP) and individual-level data on overall well-being, financial quality of life, and health. The individual cases are from representative samples of 28 European countries. Our variance-components multi-level models controlling for known individual-level predictors show that national per capita GDP increases subjective well-being, financial quality of life, and health. Net of that, the national level of inequality, as measured by the Gini coefficient, has no statistically significant effect, suggesting that income inequality does not reduce well-being, financial quality of life, or health in advanced societies. These result all imply that directing policies and resources towards inequality reduction is unlikely to benefit the general public in advanced societies.     

The household composition coefficient: A method for measuring inequality in the distribution of childrearing demands among households

A method for measuring distributional inequality was applied to household composition data to document and analyze the trend in the distribution of children and adult among households. Lorenz Curve methodology was used to depict the departure of child-adult living arrangements from absolute equality. Households and children were ranked by a child-adult ratio to capture the trend toward smaller families, single-parent families, and childless households. A Gini Coefficient was calculated to mathematically represent the relative degree of inequality in the distribution of childrearing demands from 1940 to 1980. The results evidence a trend of growing inequality, particularly since 1960, in the distribution of childrearing demands. The measure has application as a social indicator to document the extent to which responsibilities for daily care of children are distributed through the population.     

Education Expansion, Educational Inequality, and Income Inequality: Evidence from Taiwan, 1976–2003

The expansion of higher education in Taiwan starting from the late 1980s has successfully raised the average level of education. Using the concept of the education Gini, we find that the educational inequality declined as average schooling rose during the period of 1976–2003. The impacts of a rising average schooling and a declining educational inequality are also tested empirically in this paper. The evidence supports that a higher level of average schooling will generate a lower income inequality. On the other hand, a lower educational inequality, as measured by education Gini coefficient, will also cause a lower income inequality. Skill-biased technological change that shifts the labor demand from unskilled workers toward skilled workers is the most likely cause for the rising income inequality in Taiwan. However, the trend of rising income inequality could be reversed due to possible future over-education and unemployment in the labor market.     

Decomposition of an aggregate measure of income distribution

Aggregate Gini coefficients, which are measures of the inequality of the distribution of income, can be decomposed in terms of types of income, provided the constituent coefficients are defined over family units ordered according to their total income. This decomposition provides a valuable means of examining cyclical shifts affecting income equality. However, other decompositions associated with specific socio-economic or demographic criteria are shown to yield collective expressions which contain both the distributional coefficients for the particular subgroups into which the population is classified, and significant interaction terms. These interaction terms prevent the identification of a clear relationship between the overall distribution of income and the distribution of income for each of the specified subgroups. Further research in this area should focus on distributions within structurally homogeneous groups, using informal procedures for linking these distributions to form impressions of aggregate developments.     

Happiness Inequality: How Much is Reasonable?

We compute the Gini indexes for income, happiness and various simulated utility levels. Due to decreasing marginal utility of income, happiness inequality should be lower than income inequality. We find that happiness inequality is about half that of income inequality. To compute the utility levels we need to assume values for a key parameter that can be interpreted as a measure of relative risk aversion. If this coefficient is above one, as many economists believe, then a large part of happiness inequality is not related to pecuniary dimensions of life.     

The Association Between Perceived Income Inequality and Subjective Well-being: Evidence from a Social Survey in Japan

Previous studies have shown that income inequality in society is negatively associated with individuals subjective well-being (SWB), such as their perceived happiness and self-rated health (SRH). However, it is not realistic to assume that individuals have precise information about actual income distribution measured by the Gini coefficient or other statistical measures. In the current study, we examined how perceived income inequality, rather than actual inequality, was associated with SWB, using cross-sectional data collected from a nationwide, Internet survey conducted in Japan (N = 10,432). We also examined how this association was confounded by individuals’ objective and subjective income status, considering the possibility that individuals with lower income status are more inclined to both perceive income inequality and feel unhappy/unhealthy. In our analysis, we focused on the perception of widening income inequality (as perceived income inequality), perceived happiness and SRH (as SWB), and household income and living standards compared with 1 year ago and compared with others (as income status). We also controlled for personality traits. We obtained three key findings: (1) perceived income inequality was negatively associated with SWB; (2) both perceived income inequality and SWB were associated with income status; and (3) the association between perceived income inequality and SWB was attenuated after controlling for income status, but not fully for perceived happiness. These findings suggest that perceived income inequality, which links actual income inequality to SWB, should be further studied.     

Household Budgets as a Social Indicator of Poverty and Inequality in South Africa

In the absence of a universally accepted method of calculating poverty, household expenditure can be used to provide an indication of inequality of wealth and serve as an indicator of poverty. Household expenditure comprises expenditure of private households on goods and services, irrespective of their durability. The portion of household budgets allocated to different types of goods and services provides an indication of the material standard of living of a population. The article discusses different definitions of poverty and compares the state of poverty according to these definitions in selected countries. This is followed by an analysis of South Africa’s economic position in the world and a comparison of the household budgets and demographic profile of South African households that fall into different income groups in order to identify the differences between the poorest and the wealthiest households in South Africa. Income inequality in South Africa is further elucidated by means of the Gini coefficient. A comparison is also made between the household budgets of the poorest households with the minimum financial living level requirements in South Africa to maintain their health and have acceptable standards of hygiene and sufficient clothing for their needs.     

The impact of taxation on the distribution of wealth in an economy with changing population

The paper investigates into the determinants of the personal distribution of income and wealth. In an overlapping generations model all individuals are assumed to be identical except for their inherited wealth. Since life time is random the bequest of an individual and thus the inherited stock of capital of its children are stochastic variables. Taxation and social security contributions affect life cycle savings, bequests, and, eventually, the distribution of income and wealth in the society. It is shown that, in general, higher tax rates reduce distributive inequality as long as the rate of interest is exogenously given. In steady state, however, where the rate of interest is determined endogenously, increasing taxation and higher social security payments both diminish the capital labor ratio so that the rate of interest rises. If this interest effect is strong enough then it may outbalance the tendency toward more equality because higher interest rates enhance initial differences in the distribution of both income and wealth and, eventually, the inequality in the distribution of income and wealth in the society.     

Measuring Inequality of Opportunity for the Backward Communities: Regional Evidence from the Indian Labour Market

The affirmative action policy for socially and economically backward communities in employment has been a debated issue in India. In this context, this paper aims to analyze the level of inequality by distinguishing between ‘circumstance’ and ‘effort’ factors in the Roemer’s framework on equality of opportunity. We measure inequality of opportunities due to two circumstances: caste and religion. Our empirical analysis, at state-level, utilizes a recent household survey data, which provides information related to efforts as well as circumstances of workers. The paper estimated inequality in the labour market and then decomposed it to know the circumstances that cause income inequality. Our estimates indicated that inequality and inequality of opportunity is substantially higher in India. Specifically, the outcome of our analysis evidently indicated that the socially backward communities do have economically disadvantageous position in some of the Indian states. However, the degree of circumstances based on inequality varies to a great extent among the states. Therefore, we suggest that the country does not need a nation-level affirmative action policy instead a state-level policy could be more appropriate as the intensity of the problem differ significantly among the Indian states.     

Joint Income-Wealth Inequality: Evidence from Lucerne Tax Data

Social Indicators Research - Using tax data from the Swiss canton of Lucerne, we study how measures of economic inequality change if they account for income and wealth rather than income alone....