Health, Wealth and Wisdom - Exploring Multidimensional Inequality in a Developing Country

Social Indicators Research, Vol. 95 (2), 2010

Posted: 6 Dec 2013

See all articles by Therese Nilsson

Therese Nilsson

Research Institute of Industrial Economics (IFN); Lund University - Department of Economics

Date Written: January 1, 2010

Abstract

Despite a broad theoretical literature on multidimensional inequality and a widespread belief that welfare is not synonymous to income — not the least in a developing context — empirical inequality examinations rarely includes several welfare attributes. We explore three techniques on how to evaluate multidimensional inequality using Zambian household data on consumption, education, health and land. The examination indicates that level and changes in non-monetary inequality are at odds with consumption inequality. Moreover, assessment of a multidimensional index shows evidence of that dimensions of well-being compensate and reinforce each other with respect to inequality. However, a majority of the results using this technique are sensitive to the degree of substitution between attributes. In applying a stochastic dominance method few combinations fulfill the required dominance conditions. Accordingly, less imposed structure come at a cost. Clearly, sensitivity analyzes, explicitness and analyzes involving more than one technique are constructive in portraying multidimensional inequality.

Keywords: Multidimensional inequality, Income, Education, Health, Land, Zambia

Suggested Citation

Nilsson, Therese, Health, Wealth and Wisdom - Exploring Multidimensional Inequality in a Developing Country (January 1, 2010). Social Indicators Research, Vol. 95 (2), 2010, Available at SSRN: https://ssrn.com/abstract=2363794

Therese Nilsson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Lund University - Department of Economics ( email )

P.O. Box 7082
S-220 07 Lund
Sweden
+46 46 222 46 43 (Phone)

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