Multidimensional Poverty and Material Deprivation with Discrete Data

in Review of Income and Wealth (2013), 59

We propose a characterization of a popular index of multidimensional poverty which, as a special case, generates a measure of material deprivation. This index is the weighted sum of the functioning ... [more ▼]

We propose a characterization of a popular index of multidimensional poverty which, as a special case, generates a measure of material deprivation. This index is the weighted sum of the functioning failures. The important feature of the variables that may be relevant for poverty assessments is that they are discrete in nature. Thus, poverty measures based on continuous variables are not suitable in this setting and the assumption of a discrete domain is mandatory. We apply the measure to European Union member states where the concept of material deprivation was initiated and illustrate how its recommendations differ from those obtained from poverty measures based exclusively on income considerations. [less ▲]

Individual Well-Being in a Dynamic Perspective

in Economica (2012), 79

We explore the determinants of individual wellbeing as measured by self-reported levels of satisfaction with income and life. Making use of the German Socio-Economic Panel, we provide empirical evidence ... [more ▼]

We explore the determinants of individual wellbeing as measured by self-reported levels of satisfaction with income and life. Making use of the German Socio-Economic Panel, we provide empirical evidence for wellbeing depending on absolute and relative income levels in a dynamic framework where status and signal effects play a role. This finding holds after controlling for other factors in a multivariate setting. The main novelty is the consideration of dynamic aspects: the individual’s own history and the relative income performance with respect to other society members play major roles in the assessment of individual wellbeing. [less ▲]

Poverty and Time

in Journal of Economic Inequality (2012), 10

We examine the measurement of individual poverty in an intertemporal context. Our aim is to capture the importance of persistence in a state of poverty and we characterize a corresponding individual ... [more ▼]

We examine the measurement of individual poverty in an intertemporal context. Our aim is to capture the importance of persistence in a state of poverty and we characterize a corresponding individual intertemporal poverty measure. Our first axiom requires that intertemporal poverty is identical to static poverty in the degenerate single-period case. The remaining two properties express decomposability requirements within poverty spells and across spells in order to reflect the persistence issue. In addition, we axiomatize an aggregation procedure to obtain an intertemporal poverty measure for societies and we illustrate our new index with an application to EU countries. [less ▲]

Deprivation, Social Exclusion and Subjective Well-Being

in Social Indicators Research (2011), 104

This paper aims at investigating empirically the relationship between self-declared satisfaction with life and an individual’s well-being as measured by the indices of deprivation and social exclusion ... [more ▼]

This paper aims at investigating empirically the relationship between self-declared satisfaction with life and an individual’s well-being as measured by the indices of deprivation and social exclusion proposed in the income distribution literature. Results on European countries show that life satisfaction decreases with an increase in deprivation and exclusion after controlling for individual’s income, relative income and other influential factors in a multivariate setting. [less ▲]

The Distribution of Wealth in the United States from 1983 to 2004: Inequality and Polarization

in Gonzales, Jason (Ed.) Economics of Wealth in the 21st Century (2011)

Recent work has documented a rising degree of wealth inequality in the United States between 1983 and 2004. In this paper, we compare the increase in the spread of the distribution with another dimension ... [more ▼]

Recent work has documented a rising degree of wealth inequality in the United States between 1983 and 2004. In this paper, we compare the increase in the spread of the distribution with another dimension, polarization. Using alternative approaches proposed in the literature, we examine whether a similar pattern exists with regard to trends in wealth polarization over this period. Perhaps, our most notable finding is the huge increase in wealth polarization that occurred in the U.S. from 1983 to 2004, particularly from 1998 to 2004. In contrast, the Gini coefficient shows an increase in wealth inequality from 1983 to 1989 and little change thereafter. [less ▲]

Polarization Orderings of Income Distributions

in Review of Income and Wealth (2010), 56(1), 47-64

This paper considers an intermediate notion of polarization which is defined as a convex mix of relative and absolute concepts of polarization. While absolute polarization indices remain unchanged under ... [more ▼]

This paper considers an intermediate notion of polarization which is defined as a convex mix of relative and absolute concepts of polarization. While absolute polarization indices remain unchanged under equal absolute augmentation in all incomes, relative indices do not change under equiproportionate variations in all incomes. We then identify the class of intermediate polarization indices whose orderings of alternative income distributions agree with the rankings generated by intermediate polarization curves. The ranking relation developed is implemented by a simple graphical device. Finally, a numerical illustration of the results developed in the paper is provided using data from Southern European countries. [less ▲]

Generalized Gini Occupational Segregation Indices

in Research on Economic Inequality (2009), 17

This article axiomatically derives a class of numerical indices of integration (equality) in the distribution of different types of workers across occupations. The associated segregation (inequality ... [more ▼]

This article axiomatically derives a class of numerical indices of integration (equality) in the distribution of different types of workers across occupations. The associated segregation (inequality) indices parallel one form of multidimensional generalized Gini inequality indices. A comparison is made with the other Gini-related segregation indices. A numerical illustration of the family of indices is also provided using US occupational data. [less ▲]

Satisfaction with Life and Economic Well-Being: Evidence from Germany

in Schmollers Jahrbuch (2009), 129

The relationship between an individual's economic well-being and satisfaction with own life has been the focus of many studies both within and across countries, in one period of time and over time. As a ... [more ▼]

The relationship between an individual's economic well-being and satisfaction with own life has been the focus of many studies both within and across countries, in one period of time and over time. As a proxy of economic well-being household income both adjusted and unadjusted for household needs has been generally used. The aim of the present paper is to propose a more comprehensive measure of well-being considering the role that wealth and permanent income play in simultaneously determining satisfaction with life. The results, based on representative microdata from the German Socio-Economic Panel Study (SOEP), suggest that both income and wealth increase satisfaction, that long-run income is more appropriate than short-term income and that satisfaction with life is particularly high for those who are at the top of both the income and wealth distributions. [less ▲]