Multidimensional Inequality in the European Union : the Joint Distribution of Household Income, Wealth and Consumption

• Autorzy: Marcin Wroński
• Języki publikacji: EN

Abstrakty

EN

We use a novel cross-country data set to measure multidimensional inequality of income, wealth, and consumption in 21 EU countries. We investigate the correlation between the positions of the household in their distributions. We use the bootstrap method to assess the statistical significance of cross-country differences. We find that the correlation between the position of the household in considered distributions varies significantly across countries. Homeownership, median income, and level of unidimensional inequalities are correlated with the strength of the link between distributions. Multidimensional analysis of inequality changes the picture emerging from the unidimensional inequality analysis. Wealth inequality is a crucial contributor to multidimensional inequality. Cross-country differences in multidimensional inequality in the European Union are rather mild. (original abstract)

Słowa kluczowe

EN

Income division; Consumption; Distribution; Multi-dimensional analysis

PL

Podział dochodów; Konsumpcja; Dystrybucja; Analiza wielowymiarowa

• Czasopismo: Economics & Sociology
• Rocznik: 2021
• Tom: 14
• Numer: nr 3
• Strony: 205--219

Twórcy

autor

Marcin Wroński

• Warsaw School of Economics Warsaw, Poland

Bibliografia

• Aaberge, R., & Brandolini, A. (2015). Multidimensional Poverty and Inequality. In A.B Atkinson & Bourguignon, F. (Eds), Handbook of Income Distribution (vol. 2, 141-216). Oxford: North-Holland.
• Araar, A. (2009). On the Decomposition of the Gini Coefficient: An Exact Approach, with an Illustration Using Cameroonian Data. Cahier de recherche/Working Paper 06-02, CIRPEE. Laval: Université Laval.
• Araar, A. (2009). The Hybrid Multidimensional Index of Inequality. Cahier de recherche/Working Paper 09-45. CIRPEE. Laval: Université Laval.
• Atkinson, A.B., & Bourguignon, F. (1982). The Comparison of Multi-Dimensioned Distributions of Economic Status. Review of Economic Studies, 49(2), 183-201.
• Banerjee, A.K. (2010). A multidimensional Gini index. Mathematical Social Sciences, 60(2), 87-93.
• Biewen, M. (2002). Bootstrap inference for inequality, mobility and poverty measurement. Journal of Econometrics, 108(2), 317-342.
• Bosmans, K., Decancq, K., & Ooghe, E. (2015). What do normative indices of multidimensional inequality really measure?. Journal of Public Economics, 130, 94-104.
• Brandolini, A. (2009). On applying synthetic indices of multidimensional well-being: health and income inequalities in France, Germany, Italy, and the United Kingdom. In R. Gotoh. & Dumouchel, P. (Eds), Against Injustice. The New Economics of Amartya Sen. Cambridge: Cambridge University Press.
• Brzeziński, M. & Sałach, K. (2020). Why wealth inequality differs between post-socialist countries?. Working Paper 2020-551, ECINEQ.
• Brzeziński M., Sałach K. & Wroński M. (2020). Wealth inequality in Central and Eastern Europe: evidence from joined household survey and rich lists' data. Economics of Transition and Institutional Change, 28(4), 637-660.
• Bui, T.K.T., & Erreygers G. (2020). Multidimensional Inequality in Vietnam, 2002-2012. Economies, 8, 29.
• Causa, O., Woloszko, N., & Leite, D. (2019). Housing, wealth accumulation and wealth distribution: evidence and stylized facts. Economics Department Working Papers No. 1588. Paris: OECD.
• Chernick, M.R. (2008). Bootstrap Methods: A Guide for Practitioners and Researchers. Wiley Series in Probability and Statistics. Hoboken, NJ: John Wiley&Sons.
• Clementi, F., & Gianmoena, L. (2017). Modeling the Joint Distribution of Income and Consumption in Italy. A Copula-Based Approach With κ-Generalized Margins. In M.Gallegati, A.Palestrini, & Russo, A. (Eds), Introduction to Agent-Based Economics (191-228). London: Academic Press.
• Cowell, F. (2011). Measuring Inequality.LSE Perspectives in Economic Analysis. Oxford:Oxford University Press.
• Decancq, K., & Lugo, M.A. (2012). Inequality of Wellbeing: A Multidimensional Approach. Economica, 79 (316), 721-746.
• Decancq, K. (2017). Measuring Multidimensional Inequality in the OECD Member Countries with a Distribution-Sensitive BetterLife Index. Social Indicators Research, 131(3), 1057-1086.
• Fisher, J., Johnson, D., Smeeding, T., & Thompson, J. (2018). Inequality in 3-D: Income, Consumption, and Wealth. Finance and Economics Discussion Series 2018-001. Washington D.C.: Board of Governors of the Federal Reserve System.
• Fluckiger, Y. & Silber, J. (1994). The Gini Index and the Measurement of Multidimensional Inequality. Oxford Bulletin of Economics and Statistics, 56(2), 225-228.
• Furceri, D. & Ostry, J.D. (2019). Robust determinants of income inequality. Oxford Review of Economic Policy, 35(3), 490-517.
• Gajdos, T. &Weymark, J.A. (2005). Multidimensional generalized Gini indices. Economic Theory, 26(3), 471-496.
• Hirschman, D. (2016). Rediscovering the 1%: Economic Expertise and Inequality Knowledge. SocArXiv Papers
• Household Finance and Consumption Network (2020). The Household Finance and Consumption Survey: Results from the 2017 wave. ECB Statistics Paper Series No. 36. Frankfurt am Main: European Central Bank.
• Household Finance and Consumption Network (2020). The Household Finance and Consumption Survey: Methodological report for the 2017 wave, ECB Statistics Paper Series No. 35, European Central Bank.
• Household Finance and Consumption Network (2020). The Household Finance and Consumption Survey. Wave 2017: Statistical Tables. Frankfurt am Main: European Central Bank.
• Hussey, A.J., Jetter, M. & McWilliam, D. (2021). The Fundamental Determinants of Economic Inequality in Average Income Across Countries: The Declining Role of Political Institutions. Review of Income and Wealth, 67(1), 104-33.
• Jäntti M., Sierminska, E. & Van Kerm, P. (2015). Modelling the Joint Distribution of Income and Wealth. IZA DP No. 9190. Bonn: IZA.
• Jung, H-S., Kim, S-W. & Ahn, S-H. (2014). Multidimensional Inequality in South Korea: An Empirical Analysis. Asian Social Work and Policy Review, 8(2), 170-191.
• Justino, P., Litchfield, J. & Nimi, Y. (2004). Multidimensional Inequality: An Empirical Application to Brazil. PRUS Working Paper No. 24, Poverty Research Unit at Sussex. Brighton: University of Sussex.
• Kennickel, A. B. (2009). Ponds and Streams: Wealth and Income in the U.S., 1989 to 2007. Finance and Economic Discussion Series 2009-13. Washington D.C: Board of Governors, Federal Reserve.
• Kennickel A. B. (2019). The tail that wags: differences in effective right tail coverage and estimates of wealth inequality. Journal of Economic Inequality, 17, 443-59.
• Khan, A.U., Saboor, A. & Shah, A. (2020). Dynamics of Multidimensional Inequality Across Different Occupations in Pakistan. Social Indicators Research, 153, 93-109.
• Kolm, S.-C. (1977). Multidimensional Egalitarism. Quarterly Journal of Economics, 91(1), 1-13.
• Koshevoy, G.A. & Mosler, K. (1997). Multivariate Gini Indices. Journal of Multivariate Analysis, 60(2), 252-276.
• Lerman, R.I. & Yitzhaki (1985). Income Inequality Effects by Income Source: A New Approach and Applications to the United States. Review of Economics and Statistics, 67(1), 151-156.
• Lugo, M.A. (2007). Comparing Multidimensional Indices of Inequality: methods and application. In J. Bishop J. and Amiel, Y. (Eds.) Inequality and Poverty (Research on Economic Inequality, Vol. 14, 213 - 236). Bingley: Emerald Group Publishing Limited.
• List, C. (1999). Multidimensional Inequality Measurement: A Proposal. Nuffield College Working Paper in Economics. Oxford: Nuffield College.
• Maasoumi, E. (1986). The Measurement and Decomposition of Multi-Dimensional Inequality. Econometrica, 54(4), 991-997.
• OECD (2013). OECD Guidelines for Micro Statistics on Household Wealth. Paris: OECD Publishing.
• OECD (2020). How's Life? 2020: Measuring Well-being. Paris: OECD Publishing.
• Office for National Statistics (2020). Household income, spending and wealth, Great Britain: April 2016 to March 2018. Examining income, spending, and wealth to better understand the financial well-being of households. London: Office for National Statistics.
• Parente, F. (2019). A Multidimensional Analysis of the EU Regional Inequalities. Social Indicators Research 143(3), 1017-1044.
• Piketty, T. (2014). Capital in the Twenty-First Century. Cambridge: Harvard University Press.
• Permanyer, I. (2010). The Measurement of Multidimensional Gender Inequality: Continuing the Debate. Social Indicators Research, 95(2), 181-198.
• Reid-Henry, S. (2015). The Political Origins of Inequality. Why A More Equal World Is Better For Us All. Chicago: Chicago University Press.
• Rohde, N. & Guest, R. (2012). Multidimensional Racial Inequality in the United States. Social Indicators Research, 114(2), 591-605.
• Rubin, D.,B. (1987). Multiple Imputation for Nonresponse in Surveys. Wiley series in probability and mathematical statistics. Applied probability and statistics. New York: John Wiley & Sons.
• Ruiz, N. (2015). Measuring The Joint Distribution of Household's Income, Consumption and Wealth Using Nested Generalized Mean. Singapore Economic Review, 63(3), 759-785.
• Sen, A. (1997). From income inequality to economic inequality. Southern Economic Journal, 64, 384-401.
• Sosa Escudero, W. & Gasparini, L. (2000). A note on the statistical significance of changes in inequality. Económica, 46(1), 111-122.
• Stiglitz, J. E., Sen, A. & Fitoussi, J-P. (2009). Report by the Commission on the Measurement of Economic Performance and Social Progress. Commission on the Measurement of Economic Performance and Social Progress.
• Steiner, V. & Zhu, J. (2021). A Joint Top Income and Wealth Distribution.Discussion Paper 2021/3, School of Business & Economics. Berlin: Freie Universität Berlin.
• Tsui, K.Y. (1995). Multidimensional Generalizations of the Relative and Absolute Inequality Indices: The Atkinson-Kolm-Sen Approach. Journal of Economic Theory, 67(1), 251-265.
• Tsui, K.Y. (1999). Multidimensional Inequality and Multidimensional Generalized Entropy Measures: An Axiomatic Derivation. Social Choice and Welfare, 16, 145-57.
• Van Phan, P. & O'Brien, M. (2019). Multidimensional wellbeing inequality in a developing country: A case study of Vietnam. Social Indicators Research, 1/2019.
• Wroński, M. (2019). Kluczowe problemy metodologiczne w badaniach nad majątkiem gospodarstw domowych (Key Methodological Issues in the Research on Household Wealth), Wiadomości Statystyczne (Polish Statistician), 5(696), 34-47.
• Yemtsov, R. (2007). Housing Privatization and Household Wealth in Transition. Research Paper No. 2007/02. Helsinki: UNU-WIDER

Identyfikatory

DOI

10.14254/2071-789X.2021/14-3/11