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Economics Working Papers, Department of Economics, CAU Kiel >
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http://hdl.handle.net/10419/22047
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| Title: | | Equivalence scales reconsidered: an empirical investigation  |
| Authors: | | Bönke, Timm Schröder, Carsten |
| Issue Date: | | 2007 |
| Series/Report no.: | | Economics working paper / Christian-Albrechts-Universität Kiel, Department of Economics 2007,31 |
| Abstract: | | Income-expenditure surveys typically provide incomes on the household level. As households can differ in size and needs, a reliable assessment of inequality in living standards, therefore, necessitates the conversion of the original heterogeneous into an artificial quasi-homogeneous population. Ebert and Moyes (2003) and Shorrocks (2004) theoretically explore the properties of two alternative conversion strategies: a weighting of household equivalent incomes by size and by needs. We use data from the Luxembourg Income Study for examining the sensitivity of the Gini and the Theil index to the chosen conversion strategy, and explain our results by means of an inequality decomposition by population subgroups. |
| Subjects: | | income distribution inequality inequality decomposition equivalence scale |
| JEL: | | I32 D63 D31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Economics Working Papers, Department of Economics, CAU Kiel
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