Distributionally-Sensitive Inequality Indices and the GB2 Income Distribution

7 Pages Posted: 12 May 2009

See all articles by Stephen P. Jenkins

Stephen P. Jenkins

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration; Institute for the Study of Labor (IZA); University of Essex - Institute for Social and Economic Research (ISER)

Abstract

The Generalized Beta of the Second Kind (GB2) income distribution provides an excellent description of income distributions. However the degree of inequality implied by GB2 parameter estimates is typically summarized using the Gini coefficient only. This paper provides formulae for the Generalized Entropy class of inequality indices for GB2 distributions, thereby providing a full range of top-sensitive and bottom-sensitive measures. The usefulness of having a portfolio of distributionally-sensitive indices is demonstrated using GB2-based estimates of British income inequality in 1994/95 and 2004/05.

Suggested Citation

Jenkins, Stephen P., Distributionally-Sensitive Inequality Indices and the GB2 Income Distribution. Review of Income and Wealth, Vol. 55, Issue 2, pp. 392-398, June 2009, Available at SSRN: https://ssrn.com/abstract=1400385 or http://dx.doi.org/10.1111/j.1475-4991.2009.00318.x

Stephen P. Jenkins (Contact Author)

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration ( email )

Houghton Street
London, England WC2A 2AE
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
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Germany

University of Essex - Institute for Social and Economic Research (ISER) ( email )

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Colchester CO4 3SQ
United Kingdom
+44 120 687 3374 (Phone)
+44 120 687 3151 (Fax)

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