Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216369 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13057
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
To compare distributions of ordinal data such as individuals' responses on Likert-type scale variables summarizing subjective well-being, we should not apply the toolbox of methods developed for cardinal variables such as income. Instead we should use an analogous toolbox which takes account of the ordinal nature of the responses. This paper reviews these methods and introduces a new Stata command ineqord for undertaking distributional comparisons. As the empirical illustrations demonstrate, ineqord can be used for dominance checks as well as for estimation of indices of polarization and inequality.
Subjects: 
inequality
ordinal data
subjective well-being
life satisfaction
Annual Population Survey
JEL: 
D31
D63
I31
Document Type: 
Working Paper

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