Startseite Decompositions of Inequality and Poverty by Income Source
Artikel
Lizenziert
Nicht lizenziert Erfordert eine Authentifizierung

Decompositions of Inequality and Poverty by Income Source

  • Ivica Urban ORCID logo EMAIL logo , Slavko Bezeredi und Chrysa Leventi
Veröffentlicht/Copyright: 15. Juli 2024
The B.E. Journal of Economic Analysis & Policy
Aus der Zeitschrift The B.E. Journal of Economic Analysis & Policy Band 24 Heft 3

Abstract

There is ample empirical literature on the contributions of different income sources to total income inequality. In contrast, studies estimating the contributions of income sources to income poverty are scarce. This paper presents a new decomposition of the Foster–Greer–Thorbecke poverty index, based on a marginal approach previously employed to decompose income inequality. We apply these marginal decompositions to data for 15 EU countries and classify six income sources according to their impact on inequality and poverty. Our results indicate that there are significant differences in the contributions of income sources to poverty compared to their respective contributions to inequality.

Keywords: income sources; inequality; poverty; decomposition
JEL Classification: D31; H22; H23; I32
Corresponding author: Ivica Urban, Institute of Public Finance, Zagreb, Croatia, E-mail: 

Funding source: Hrvatska Zaklada za Znanost

Award Identifier / Grant number: IP-2019-04-9924

Acknowledgments

The authors are thankful to the reviewer for valuable comments and suggestions. Some of the results presented in this paper are based on EUROMOD version I5.0+. Having been originally maintained, developed, and managed by the Institute for Social and Economic Research, since 2021 EUROMOD has been maintained, developed, and managed by the Joint Research Centre of the European Commission in collaboration with EUROSTAT and national teams from the EU countries. The authors are indebted to the many people who have contributed to the development of EUROMOD. The authors are responsible for the results and their interpretation. The work was fully supported by the Croatian Science Foundation [Grant number IP-2019-04-9924].

References

Araar, A., and J.-Y. Duclos. 2007. DASP: Distributive Analysis Stata Package. PEP, World Bank, UNDP and Université Laval. http://dasp.ecn.ulaval.ca/index.html.Suche in Google Scholar

Foster, J. E., J. Greer, and E. Thorbecke. 1984. “A Class of Decomposable Poverty Measures.” Econometrica 52 (3): 761–6. https://doi.org/10.2307/1913475.Suche in Google Scholar

Foster, J. E., J. Greer, and E. Thorbecke. 2010. “The Foster–Greer–Thorbecke (FGT) Poverty Measures: 25 Years Later.” The Journal of Economic Inequality 8 (4): 491–524. https://doi.org/10.1007/s10888-010-9136-1.Suche in Google Scholar

Kakwani, N. C. 1977. “Applications of Lorenz Curves in Economic Analysis.” Econometrica 45 (3): 719–27. https://doi.org/10.2307/1911684.Suche in Google Scholar

Kakwani, N. C. 1993. “Poverty and Economic Growth with Application to Côte D’Ivoire.” Review of Income and Wealth 39 (2): 121–39. https://doi.org/10.1111/j.1475-4991.1993.tb00443.x.Suche in Google Scholar

Lerman, R. I., and S. Yitzhaki. 1985. “Income Inequality Effects by Income Source: A New Approach and Applications to the United States.” The Review of Economics and Statistics 67 (1): 151–6. https://doi.org/10.2307/1928447.Suche in Google Scholar

Mussard, S., and M. N. P. Alperin. 2011. “Poverty Growth in Scandinavian Countries: A Sen Multi-Decomposition.” Economic Modelling 28 (6): 2842–53. https://doi.org/10.1016/j.econmod.2011.08.020.Suche in Google Scholar

Mussard, S., and P. Richard. 2012. “Linking Yitzhaki’s and Dagum’s Gini Decompositions.” Applied Economics 44 (23): 2997–3010. https://doi.org/10.1080/00036846.2011.568.Suche in Google Scholar

Paul, S. 2004. “Income Sources Effects on Inequality.” Journal of Development Economics 73 (1): 435–51. https://doi.org/10.1016/j.jdeveco.2003.02.004.Suche in Google Scholar

Rao, V. M. 1969. “Two Decompositions of Concentration Ratio.” Journal of the Royal Statistical Society: Series A 132 (3): 418–25. https://doi.org/10.2307/2344120.Suche in Google Scholar

Sen, A. 1976. “Poverty: An Ordinal Approach to Measurement.” Econometrica 44 (2): 219. https://doi.org/10.2307/1912718.Suche in Google Scholar

Shorrocks, A. F. 1982. “Inequality Decomposition by Factor Components.” Econometrica 50 (1): 193–212. https://doi.org/10.2307/1912537.Suche in Google Scholar

Stark, O., J. E. Taylor, and S. Yitzhaki. 1986. “Remittances and Inequality.” Economic Journal 96 (383): 722–40. https://doi.org/10.2307/2232987.Suche in Google Scholar

Sutherland, H., and F. Figari. 2013. “EUROMOD: The European Union Tax-Benefit Microsimulation Model.” International Journal of Microsimulation 6 (1): 4–26. https://doi.org/10.34196/ijm.00075.Suche in Google Scholar

Yitzhaki, S. 1983. “On an Extension of the Gini Inequality Index.” International Economic Review 24 (3): 617. https://doi.org/10.2307/2648789.Suche in Google Scholar

Yitzhaki, S. 2002. “Do We Need a Separate Poverty Measurement?” European Journal of Political Economy 18: 61–85. https://doi.org/10.1016/S0176-2680(01)00069-6.Suche in Google Scholar

Supplementary Material

This article contains supplementary material (https://doi.org/10.1515/bejeap-2024-0004).

Received: 2024-01-05
Accepted: 2024-06-21
Published Online: 2024-07-15

© 2024 Walter de Gruyter GmbH, Berlin/Boston

Artikel in diesem Heft

  1. Frontmatter
  2. Research Articles
  3. Asymmetric Performance Evaluation Under Quantity and Price Competition with Managerial Delegation
  4. Incentive-Induced Social Tie and Subsequent Altruism and Cooperation
  5. University Admission: Is Achievement a Sufficient Criterion?
  6. Taxing Firearms Like Alcohol or Tobacco
  7. The Growing Importance of Social Skills for Labor Market Outcomes Across Education Groups
  8. The Impact of the Affordable Care Act in Puerto Rico
  9. Strategic Individual Behaviors and the Efficient Vaccination Subsidy
  10. Is Family-Priority Rule the Right Path? An Experimental Study of the Chinese Organ Allocation System
  11. Letters
  12. Real-effort in the Multilevel Public Goods Game
  13. Initial Payment and Refunding Scheme for Climate Change Mitigation and Technological Development Among Heterogeneous Countries
  14. Edutainment and Dwelling-Related Assets in Poor Rural Areas of Peru
  15. Biased Voluntary Nutri-Score Labeling
  16. Decompositions of Inequality and Poverty by Income Source
  17. Job Loss and Migration: Do Family Connections Matter?
https://doi.org/10.1515/bejeap-2024-0004
Schlagwörter für diesen Artikel
income sources; inequality; poverty; decomposition

Artikel in diesem Heft

  1. Frontmatter
  2. Research Articles
  3. Asymmetric Performance Evaluation Under Quantity and Price Competition with Managerial Delegation
  4. Incentive-Induced Social Tie and Subsequent Altruism and Cooperation
  5. University Admission: Is Achievement a Sufficient Criterion?
  6. Taxing Firearms Like Alcohol or Tobacco
  7. The Growing Importance of Social Skills for Labor Market Outcomes Across Education Groups
  8. The Impact of the Affordable Care Act in Puerto Rico
  9. Strategic Individual Behaviors and the Efficient Vaccination Subsidy
  10. Is Family-Priority Rule the Right Path? An Experimental Study of the Chinese Organ Allocation System
  11. Letters
  12. Real-effort in the Multilevel Public Goods Game
  13. Initial Payment and Refunding Scheme for Climate Change Mitigation and Technological Development Among Heterogeneous Countries
  14. Edutainment and Dwelling-Related Assets in Poor Rural Areas of Peru
  15. Biased Voluntary Nutri-Score Labeling
  16. Decompositions of Inequality and Poverty by Income Source
  17. Job Loss and Migration: Do Family Connections Matter?
Jetzt anmelden und 20% sparen
Institutioneller Zugang
Wie funktioniert Authentifizierung?
Haben Sie eine Idee, wie wir unsere Website verbessern können?
Bitte schreiben Sie uns.
© 2025 De Gruyter Brill
Heruntergeladen am 22.10.2025 von https://www.degruyterbrill.com/document/doi/10.1515/bejeap-2024-0004/html
Button zum nach oben scrollen