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Rostek, Marzena Joanna
Year of Publication: 
Series/Report no.: 
LIS Working Paper Series 240
This study explores income changes in nine European countries. First, in order to rank the distributions of income, we apply dominance criteria. Then, we extend this standard approach and examine the differences between Lorenz and Generalized Lorenz curves by means of nonparametric methods. We trace movements in relative position of particular income groups by investigating the direction and magnitude of the impact of changes in income that took place. Analysis of the inequality distributions allows us to reveal the information concealed in these curves, but not provided by the ranking. Apart from the time- and country-specific phenomena, we identify some regular, consistent across time and space patterns. To assess the consistency of our results, we employ different specifications of equivalence scales. In addition, this sensitivity analysis provides evidence of a U- and inverted J-shape pattern displayed by the value of inequality index, when the parameters of the equivalence scale are changed.
Document Type: 
Working Paper
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