Ordinal Multidimensional Inequality

UNU-WIDER working paper 10/2013; 2013/097.

Posted: 14 Dec 2014

See all articles by Christoffer Sonne-Schmidt

Christoffer Sonne-Schmidt

University of Copenhagen - Department of Economics

Finn Tarp

University of Copenhagen - Department of Economics

Date Written: October 1, 2013

Abstract

This paper proposes a concept of inequality comparisons with ordinal multidimensional categorical data. In our model, one population is more unequal than another when they have common arithmetic median outcomes and the first can be obtained from the second by correlation-increasing switches and/or median-preserving spreads. For the 2x2 case (with two binary indicators), we derive an operational procedure for checking ordinal inequality relations in practice. As an illustration, we apply the model to childhood poverty in Mozambique.

Keywords: qualitative data, multidimensional first order dominance, multi-dimensional inequality, ordinal comparison

JEL Classification: D63, I32, O15

Suggested Citation

Sonne-Schmidt, Christoffer and Tarp, Finn, Ordinal Multidimensional Inequality (October 1, 2013). UNU-WIDER working paper 10/2013; 2013/097., Available at SSRN: https://ssrn.com/abstract=2537864

Christoffer Sonne-Schmidt

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Finn Tarp (Contact Author)

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

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