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‣ Relation between income inequality and mortality: empirical demonstration

Wolfson, Michael C; Kaplan, George; Lynch, John; Ross, Nancy; Backlund, Eric
Fonte: Copyright 2000 BMJ publishing Group Publicador: Copyright 2000 BMJ publishing Group
Tipo: Artigo de Revista Científica
Publicado em /01/2000 Português
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Objective To assess the extent to which observed associations between income inequality and mortality at population level are statistical artifacts. Design Indirect “what if” simulation using observed risks of mortality at individual level as a function of income to construct hypothetical state-level mortality specific for age and sex as if the statistical artifact argument were 100% correct. Method Data from the 1990 census for the 50 US states plus Washington, DC, were used for population distributions by age, sex, state, and income range; data disaggregated by age, sex, and state from the Centers for Disease Control and Prevention were used for mortality; and regressions from the national longitudinal mortality study were used for the individual-level relation between income and risk of mortality. Results Hypothetical mortality, although correlated with inequality (as implied by the logic of the statistical artifact argument), showed a weaker association with the level of income inequality in each state than the observed mortality. Conclusions The observed associations in the United States at the state level between income inequality and mortality cannot be entirely or substantially explained as statistical artifacts of an underlying individual-level relation between income and mortality. There remains an important association between income inequality and mortality at state level above anything that could be accounted for by any statistical artifact. This result reinforces the need to consider a broad range of factors...

‣ Schumpeterian Growth Theory and the Dynamics of Income Inequality

Aghion, Philippe
Fonte: Econometric Society Publicador: Econometric Society
Tipo: Artigo de Revista Científica
Português
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In this lecture, it is argued that Schumpeterian Growth Theory, in which growth is driven by a sequence of quality-improving innovations, can shed light on two important puzzles raised by the recent evolution of wage inequality in developed economies. The first puzzle concerns wage inequality between educational groups, which has substantially risen in the US and the UK during the past two decades following a sharp increase in the supply of educated labor. The second puzzle concerns wage inequality within educational groups, which accounts for a large fraction of the observed increase in wage inequality, although in contrast to between-group wage inequality it has mainly affected the temporary component of income. The definitive version is available at www3.interscience.wiley.com.; Economics

‣ Revisiting Between-group Inequality Measurement : An Application to the Dynamics of Caste Inequality in Two Indian villages

Lanjouw, Peter; Rao, Vijayendra
Fonte: Banco Mundial Publicador: Banco Mundial
Português
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Standard approaches to decomposing how much group differences contribute to inequality rarely show significant between-group inequality, and are of limited use in comparing populations with different numbers of groups. This study applies an adaptation to the standard approach that remedies these problems to longitudinal household data from two Indian villages -- Palanpur in the north, and Sugao in the west. The authors find that in Palanpur the largest scheduled caste group failed to share in the gradual rise in village prosperity. This would not have emerged from standard decomposition analysis. However, in Sugao the alternative procedure did not yield any additional insights because income gains applied relatively evenly across castes.

‣ Revisiting Between-Group Inequality Measurement: An Application to the Dynamics of Caste Inequality in Two Indian Villages

Lanjouw, Peter; Rao, Vijayendra
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Artigo de Revista Científica
Português
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77.60195%
Standard approaches to decomposing how much group differences contribute to inequality rarely show significant between-group inequality, and are of limited use in comparing populations with different numbers of groups. We apply an adaptation to the standard approach that remedies these problems to longitudinal household data from two Indian villages-Palanpur in the north and Sugao in the west. In Palanpur we find that the largest Scheduled Caste group failed to share in the gradual rise in village prosperity. This would not have emerged from standard decomposition analysis. However, in Sugao the alternative procedure does not yield any additional insights because income gains have applied relatively evenly across castes.

‣ Reinterpreting Between-Group Inequality

Elbers, Chris; Lanjouw, Peter; Mistiaen, Johan A.; Ozler, Berk
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Artigo de Revista Científica
Português
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77.58789%
We evaluate observed inequality between population groups against a benchmark of the maximum between-group inequality attainable given the number and relative sizes of those groups under examination. Because our measure is normalized by these parameters, drawing comparisons across different settings is less problematic than with conventional inequality decompositions. Moreover, our measure can decline with finer sub-partitioning of population groups. Consequently, the exact manner in which one groups the population acquires greater significance. Survey data from various countries suggest that our approach can provide a complementary perspective on the question of whether (and how much) a particular population breakdown is salient to an assessment of inequality in a country.

‣ Earnings Inequality Within and Across Gender, Racial, and Ethnic Groups in Four Latin American Countries

Cunningham, Wendy; Jacobsen, Joyce P.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Latin American countries are generally characterized as displaying high income and earnings inequality overall along with high inequality by gender, race, and ethnicity. However, the latter phenomenon is not a major contributor to the former phenomenon. Using household survey data from four Latin American countries (Bolivia, Brazil, Guatemala, and Guyana) for which stratification by race or ethnicity is possible, this paper demonstrates (using Theil index decompositions as well as Gini indices, and 90/10 and 50/10 percentile comparisons) that within-group earnings inequality rather than between-group earnings inequality is the main contributor to overall earnings inequality. Simulations in which the relatively disadvantaged gender and/or racial/ethnic group is treated as if it were the relatively advantaged group tend to reduce overall earnings inequality measures only slightly and in some cases have the effect of increasing earnings inequality measures.

‣ The Measurement of Inequality of Opportunity : Theory and an Application to Latin America

Ferreira, Francisco H.G.; Gignoux, Jérémie
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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What part of the inequality observed in a particular country is due to unequal opportunities, rather than to differences in individual efforts or luck? This paper estimates a lower bound for the opportunity share of inequality in labor earnings, household income per capita and household consumption per capita in six Latin American countries. Following John Roemer, the authors associate inequality of opportunity with outcome differences that can be accounted for by morally irrelevant pre-determined circumstances, such as race, gender, place of birth, and family background. Thus defined, unequal opportunities account for between 24 and 50 percent of inequality in consumption expenditure in the sample. Brazil and Central America are more opportunity-unequal than Colombia, Ecuador, or Peru. "Opportunity profiles," which identify the social groups with the most limited opportunity sets, are shown to be distinct from poverty profiles: ethnic origin and the geography of birth are markedly more important as determinants of opportunity deprivation than of outcome poverty...

‣ Measuring Ancient Inequality

Milanovic, Branko; Lindert, Peter H.; Williamson, Jeffrey G.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Is inequality largely the result of the Industrial Revolution? Or, were pre-industrial incomes and life expectancies as unequal as they are today? For want of sufficient data, these questions have not yet been answered. This paper infers inequality for 14 ancient, pre-industrial societies using what are known as social tables, stretching from the Roman Empire 14 AD, to Byzantium in 1000, to England in 1688, to Nueva España around 1790, to China in 1880 and to British India in 1947. It applies two new concepts in making those assessments - what the authors call the inequality possibility frontier and the inequality extraction ratio. Rather than simply offering measures of actual inequality, the authors compare the latter with the maximum feasible inequality (or surplus) that could have been extracted by the elite. The results, especially when compared with modern poor countries, give new insights in to the connection between inequality and economic development in the very long run.

‣ Re-Interpreting Sub-Group Inequality Decompositions

Elbers, Chris; Lanjouw, Peter; Mistiaen, Johan A.; Özler, Berk
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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The authors propose a modification to the conventional approach of decomposing income inequality by population sub-groups. Specifically, they propose a measure that evaluates observed between-group inequality against a benchmark of maximum between-group inequality that can be attained when the number and relative sizes of groups under examination are fixed. The authors argue that such a modification can provide a complementary perspective on the question of whether a particular population breakdown is salient to an assessment of inequality in a country. As their measure normalizes between-group inequality by the number and relative sizes of groups, it is also less subject to problems of comparability across different settings. The authors show that for a large set of countries their assessment of the importance of group differences typically increases substantially on the basis of this approach. The ranking of countries (or different population groups) can also differ from that obtained using traditional decomposition methods. Finally, they observe an interesting pattern of higher levels of overall inequality in countries where their measure finds higher between-group contributions.

‣ Inequality of Opportunity, Income Inequality and Economic Mobility : Some International Comparisons

Brunori, Paolo; Ferreira, Francisco H.G.; Peragine, Vito
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Despite a recent surge in the number of studies attempting to measure inequality of opportunity in various countries, methodological differences have so far prevented meaningful international comparisons. This paper presents a comparison of ex-ante measures of inequality of economic opportunity (IEO) across 41 countries, and of the Human Opportunity Index (HOI) for 39 countries. It also examines international correlations between these indices and output per capita, income inequality, and intergenerational mobility. The analysis finds evidence of a "Kuznets curve" for inequality of opportunity, and finds that the IEO index is positively correlated with overall income inequality, and negatively with measures of intergenerational mobility, both in incomes and in years of schooling. The HOI is highly correlated with the Human Development Index, and its internal measure of inequality of opportunity yields very different country rankings from the IEO measure.

‣ Non-Farm Diversification, Poverty, Economic Mobility and Income Inequality : A Case Study in Village India

Himanshu; Lanjouw, Peter; Murgai, Rinku; Stern, Nicholas
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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This paper assembles data at the all-India level and for the village of Palanpur, Uttar Pradesh, to document the growing importance, and influence, of the non-farm sector in the rural economy between the early 1980s and late 2000s. The suggestion from the combined National Sample Survey and Palanpur data is of a slow process of non-farm diversification, whose distributional incidence, on the margin, is increasingly pro-poor. The village-level analysis documents that the non-farm sector is not only increasing incomes and reducing poverty, but appears as well to be breaking down long-standing barriers to mobility among the poorest segments of rural society. Efforts by the government of India to accelerate the process of diversification could thus yield significant returns in terms of declining poverty and increased income mobility. The evidence from Palanpur also shows, however, that at the village-level a significant increase in income inequality has accompanied diversification away from the farm. A growing literature argues that such a rise in inequality could affect the fabric of village society...

‣ On the Unequal Inequality of Poor Communities

Elbers, Chris; Lanjouw, Peter F.; Mistiaen, Johan; Özler, Berk; Simler, Ken
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
Português
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Important differences exist between communities with respect to their needs, capacities, and circumstances. As central governments are not able to discern these differences fully, they seek to achieve their policy objectives by relying on decentralized mechanisms that use local information. However, household and individual characteristics within communities can also vary substantially. A growing theoretical literature suggests that inequality within communities can influence policy outcomes, and that this influence could be harmful or helpful, depending on the circumstances. Empirical investigations into the impact of inequality have, to date, largely been held back by a lack of systematic evidence on community-level inequality. The authors use household survey and population census data to estimate per capita consumption inequality within communities in three developing countries: Ecuador, Madagascar, and Mozambique. Communities are found to vary markedly from one another in terms of the degree of inequality they exhibit. The authors also show that there should be no presumption that inequality is less severe in poor communities. They argue that the kind of community-level inequality estimates generated in this paper can be used in designing and evaluating decentralized antipoverty programs.

‣ The Wage Labor Market and Inequality in Vietnam in the 1990s

Gallup, John Luke
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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Has the expansion of wage employment in Vietnam exacerbated social inequalities, despite its contribution to income growth? Gallup uses the two rounds of the Vietnamese Living Standards Survey (VLSS) to evaluate the contribution of wage employment to inequality and income growth over the period of rapid economic growth in the 1990s following market reforms. If Vietnam sustains its economic development in the future, wage employment will become an ever more important source of household income as family farms and self-employed household enterprises become less prevalent. Observing the recent evolution of wage employment compared with farm and non-farm self-employment provides clues as to how economic development will change Vietnamese society, in particular its impact on income inequality within and between communities. The author shows that standard methods for calculating income inequality can be severely biased due to measurement error when decomposing the contribution of different sectors, regions, or groups to overall inequality. A new method for consistent decomposition of inequality by income source shows that despite the rapid growth of wages in the 1990s...

‣ Measuring Inequality of Opportunity with Imperfect Data : The Case of Turkey

Ferreira, Francisco H.G.; Gignoux, Jeremie; Aran, Meltem
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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The measurement of inequality of opportunity has hitherto not been attempted in a number of countries because of data limitations. This paper proposes two alternative approaches to circumventing the missing data problems in countries where a demographic and health survey and an ancillary household expenditure survey are available. One method relies only on the demographic and health survey, and constructs a wealth index as a measure of economic advantage. The alternative method imputes consumption from the ancillary survey into the demographic and health survey. In both cases, the between-type share of overall inequality is computed as a lower bound estimator of inequality of opportunity. Parametric and non-parametric estimates are calculated for both methods, and the parametric approach is shown to yield preferable lower-bound measures. In an application to the sample of ever-married women aged 30-49 in Turkey, inequality of opportunity accounts for at least 26 percent (31 percent) of overall inequality in imputed consumption (the wealth index).

‣ Gender Inequality and Growth : The Case of Rich vs. Poor Countries

Amin, Mohammad; Kuntchev, Veselin; Schmidt, Martin
Fonte: World Bank Group, Washington, DC Publicador: World Bank Group, Washington, DC
Português
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This paper uses cross-section data for 107 countries to explore the relationship between gender inequality and economic growth. The paper departs from the literature by using a broad measure of gender inequality that goes well beyond gender inequality in education, which has been the focus of most studies. Another novelty of the paper lies in exploring heterogeneity in the growth-gender inequality relationship. The results confirm that greater gender inequality is strongly associated with lower economic growth. However, this negative relationship between gender inequality and growth is entirely due to the relatively poor countries, with the relatively rich countries showing no such relationship. The findings have important implications for the design and targeting of gender-specific policies.

‣ Desigualdad en la distribución mundial de emisiones de CO2 por sectores: descomposición y estudio de sensibilidad; Inequality of global distribution of CO2 emissions by sector: decomposition and sensitivity study

Remuzgo Pérez, Lorena; Sarabia Alegría, José María
Fonte: Asociación Internacional de Economía Aplicada ASEPELT Publicador: Asociación Internacional de Economía Aplicada ASEPELT
Tipo: info:eu-repo/semantics/article; publishedVersion
Português
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RESUMEN. En este trabajo se analiza la desigualdad en la distribución mundial de emisiones de CO2 por sectores, para las regiones del PNUD en el año 2009, mediante el índice de Theil-Bourguignon, que permite descomponer la desigual-dad total en la distribución por grupos de población. Cabe destacar que la mayor desigualdad en las emisiones de CO2 por sectores se produce en regiones que están formadas por países pobres o en vías de desarrollo. Asimismo, los resultados proporcionan una mayor importancia relativa al componente de desigualdad intragrupos. Posteriormente, se completa el estudio anterior mediante un análisis de sensibilidad de los componentes de desigualdad, utilizando la familia de índices de entropía generalizada. Dichos resultados señalan de nuevo el importante peso del componente intragrupos.; ABSTRACT. In this paper, inequality of global distribution of CO2 emissions by sector is studied across the regions considered by the UNDP in the year 2009. Firstly, the research is carried out using the Theil-Bourguignon inequality index which can be decomposed into the within-group and the between-group inequality components. The greatest inequality in CO2 emissions by sector occurs in regions that are formed by poor or developing countries. The results show also that the within-group inequality component is the main contributor to the whole inequality value. Secondly...

‣ Exploring the Sources of Downward Bias in Measuring Inequality of Opportunity

Lara Ibarra, Gabriel; Martinez Cruz, Adan L.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Working Paper; Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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This study analyzes the extent of downward bias in the calculation of inequality of opportunity for continuous outcomes such as income. A typically recognized source of bias is the unobserved circumstances as there is a limited set of variables available in household and labor force surveys. Another previously overlooked source is the likely unobservable nature of top incomes. Using Monte Carlo simulations where the underlying inequality of opportunity is predetermined at various levels, the study presents three key findings. First, the omission of a relevant circumstance can bias the inequality of opportunity estimate by as much as 80 percent, depending on how much variation of the outcome such circumstance explains. Second, not observing the top 5 percent of the income distribution can lead to downward biases of anywhere between 12 and 35 percent, and the combination of missing the most favored population and even one relevant circumstance exacerbates the bias of the empirical estimates. The third key result is that the estimated inequality of opportunity is strongly correlated with the amount of variation in the outcome variable explained by the combination of circumstances (measured by the R2). This result suggests that in empirical applications...

‣ An inequality decomposition method which minimizes equivalence scales contamination problems

Río, Coral del; Ruiz-Castillo, Javier
Fonte: Universidade Carlos III de Madrid Publicador: Universidade Carlos III de Madrid
Tipo: Trabalho em Andamento Formato: application/pdf
Publicado em /06/1997 Português
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Decomposable measures are a useful tool to analyze the impact of households characteristics on income or expenditure inequality. However, the results are sensitive to the choice of equivalence scales in a heterogenous population. In this paper, we assume that equivalence scales depend only on the number of persons in the household. In this context, we suggest a method to free the decomposition analysis from the possible 'contamination' that will arise if we use an inappropiate equivalence scale. The method is applied to the evolution of the standard of living in Spain during the 80' s. We study the structure of Spanish inequality in 1980-81 and 1990-91, as well as the trend in overall inequality over time in terms of three factors: i) the change in within-group inequality, ii) the change in between-group inequality, and iii) the demographic change across partition subgroups.

‣ Economic Inequality in the Arab Region

Hassine, Nadia Belhaj
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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The paper uses harmonized household survey micro-data to assess the levels and determinants of economic inequality in 12 Arab countries. It focuses on the sources of rural-urban, as well as metropolitan-nonmetropolitan, inequalities and applies the unconditional quantile regression decomposition technique to analyze the welfare gaps across the entire distribution. The analysis finds moderate inequality levels, with the Gini coefficient for the distribution of household real per capita total expenditures ranging between 30.7 in Libya and 45 in Mauritania. Differences in households' endowments, such as demographic composition, human capital, and community characteristics, appear as the main sources of the urban-rural welfare gap. There is inequality between metropolitan and non-metropolitan regions in many countries, mainly because of differences in returns to households' characteristics and particularly returns to human capital.

‣ Global Poverty and Inequality : A Review of the Evidence

Ferreira, Francisco H.G.; Ravallion, Martin
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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Drawing on a compilation of data from household surveys representing 130 countries, many over a period of 25 years, this paper reviews the evidence on levels and recent trends in global poverty and income inequality. It documents the negative correlations between both poverty and inequality indices, on the one hand, and mean income per capita on the other. It points to the dominant role of Asia in accounting for the bulk of the world's poverty reduction since 1981. The evolution of global inequality in the last decades is also described, with special emphasis on the different trends of inequality within and between countries. The statistical relationships between growth, inequality and poverty are discussed, as is the correlation between inequality and the growth elasticity of poverty reduction. Some of the recent literature on the drivers of distributional change in developing countries is also reviewed.