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Equivalence scales reconsidered
Bönke, Timm ;  Schröder, Carsten ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleEquivalence scales reconsidered
Subtitlean empirical investigation
AuthorBönke, Timm
AuthorSchröder, Carsten
InstitutionUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages25 S.
Series Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft ; 2007/21 : Volkswirtschaftliche Reihe
Keywordsincome distribution, inequality, inequality decomposition, equivalence scale.
Classification (DDC)330 Economics
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AbstractIncome-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.
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FU DepartmentDepartment Business and Economics
Year of publication2007
Type of documentBook
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Created at2008-06-12 : 09:44:24
Last changed2014-01-23 : 04:20:02
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