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Country Inequality Rankings and Conversion Schemes


Carsten Schröder


Free University of Berlin (FUB) - Department of Business and Economics

Timm Boenke


Free University of Berlin (FUB) - Department of Business and Economics
2012

Economics Discussion Paper No. 2012-7

Abstract:     
Two conversion schemes are usually employed for assessing personal-income inequality from household equivalent incomes: to weight household units by size or by needs. Using data from the Luxembourg Income Study, the authors show the sensitivity of country inequality rankings to conversion schemes and explain the finding by means of inequality decomposition. A bootstrap approach is implemented to test for statistical significance of the results.

Number of Pages in PDF File: 33

Keywords: Inequality, equivalence scale, equivalent income, weighting scheme, decomposition

JEL Classification: D31, D63, I32

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Date posted: January 28, 2012  

Suggested Citation

Schröder, Carsten and Boenke, Timm P., Country Inequality Rankings and Conversion Schemes (2012). Economics Discussion Paper No. 2012-7. Available at SSRN: http://ssrn.com/abstract=1994248 or http://dx.doi.org/10.2139/ssrn.1994248

Contact Information

Carsten Schröder (Contact Author)
Free University of Berlin (FUB) - Department of Business and Economics ( email )
Boltzmannstrasse 20
D-14195 Berlin
Germany
+49 030 838-52259 (Phone)
+49 030 838-52560 (Fax)
Timm P. Boenke
Free University of Berlin (FUB) - Department of Business and Economics ( email )
Boltzmannstrasse 20
D-14195 Berlin
Germany
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