@techreport{Grimm2005Measurement,
abstract = {The purpose of our paper is to derive instructive analytics on how to
account for differentials in demographic variables, in particular mortality,
when performing welfare comparisons over time. The idea is to apply
various ways of ?correcting? estimated income distribution measures
for ?sample selection? due to differential mortality. We implement our
approach empirically using three waves of the Indonesian Family Life
Surveys (IFLS). We distinguish the direct effect of mortality, i.e. individuals
who die leave the population and no longer contribute to monetary
welfare, from the indirect effect, i.e. the impact on survivors in
the deceased?s household who may experience a decrease or increase in
monetary welfare. In the case of Indonesia, we show that the direct and
indirect effects of mortality on income distribution have opposite signs,
but are roughly the same in magnitude. We also show that the effects of
other demographic changes?such as changes in the structure of fertility,
migration and educational attainment?dominate the effects of mortality,
whether direct or indirect. However, we find that none of these demographic
developments is substantial enough to explain a significant part
of the change in income distribution, regardless of whether the pre-crisis
period (1993-1997) or the post-crisis period (1997-2000) is considered.},
author = {Michael Grimm and Denis Cogneau},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D10; D63; J17; 330; Differential Mortality; Income Distribution Dynamics; Welfare Comparisons; Decomposition; Einkommensverteilung; Sterblichkeit; Soziale Mobilit\"{a}t; Sozialer Indikator; Wohlfahrtseffekt; Sch\"{a}tzung; Indonesien},
language = {eng},
number = {122},
title = {The Measurement of Income Distribution Dynamics when Demographics are correlated with Income},
type = {Diskussionsbeitr\"{a}ge aus dem Volkswirtschaftlichen Seminar der Universit\"{a}t G\"{o}ttingen},
url = {http://hdl.handle.net/10419/22147},
year = {2005}
}
