Sensitivity Analysis of Equivalency Scale in Income Inequality Studies

27 Pages Posted: 14 Dec 2008

See all articles by Younguck Kang

Younguck Kang

KDI School of Public Policy and Management

Date Written: November 1, 2008

Abstract

Family size equivalency scale is widely used in income inequality studies to deal with the differences in the size of each household, and it is widely accepted that the use of different scales significantly alters the estimated values of the inequality indexes and produces U-shaped pattern. This study will demonstrate that, although the variety of equivalency scale produces different estimates of income inequality indexes, such estimated values are not statistically significantly different from each other.

Keywords: Income Inequality, Equivalency Scale, McClements Scale

JEL Classification: D33, E25, H55, I32, J30, N35

Suggested Citation

Kang, Younguck, Sensitivity Analysis of Equivalency Scale in Income Inequality Studies (November 1, 2008). KDI School of Pub Policy & Management Working Paper No. 08-13, Available at SSRN: https://ssrn.com/abstract=1303271 or http://dx.doi.org/10.2139/ssrn.1303271

Younguck Kang (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

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