Martino, Gaetano and Polinori, Paolo (2010): The individual contribution to income inequality: conceptual analysis and empirical investigation.

PDF
MPRA_paper_34365.pdf Download (284kB)  Preview 
Abstract
The paper aims to study individual contributions to income inequality. The role of individual positions in the analysis of inequality is considered at various levels. The utility of inequality analysis in analysing the variation across a given income distribution is also recognised. The paper elaborates on this perspective and proposes a definition of individual contributions to inequality within a given income distribution. The concept of such an individual contribution is proposed, and its properties are discussed. The paper presents and tests the hypothesis that given the concept of individual contributions, patterns of influence associated with the determinants of inequality can be identified across a given income distribution. An empirical method of investigation and testing is proposed based on the Survey on Household Income and Wealth carried out by the Bank of Italy. The results support the hypothesis and show that the patterns identified are useful in the analysis of inequality.
Item Type:  MPRA Paper 

Original Title:  The individual contribution to income inequality: conceptual analysis and empirical investigation 
Language:  English 
Keywords:  Inequality; personbyperson perspective; quantile regression 
Subjects:  D  Microeconomics > D3  Distribution > D31  Personal Income, Wealth, and Their Distributions D  Microeconomics > D3  Distribution > D33  Factor Income Distribution C  Mathematical and Quantitative Methods > C2  Single Equation Models; Single Variables > C21  CrossSectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions 
Item ID:  34365 
Depositing User:  Paolo Polinori 
Date Deposited:  28. Oct 2011 12:16 
Last Modified:  16. Feb 2013 05:19 
References:  ALESINA, A. and RODRIK, D. (1994) Distributive politics and economic growth, Quarterly Journal of Economics, 109, pp. 465490. ANGHION, P., CAROLI, E. and GARCIAPEDROSA, C. (1999) Inequality and economic growth: the perspective of the new growth theories, Journal of Economic Literature, 37, pp. 16151660. ASSANE, D. and GRAMMY, A. (2003) New evidence on the effect of human capital on economic growth, Applied Economics Letters, 35, pp. 18811817. ATKINSON, A.B. (1970) On the measurement of inequality, Journal of Economic Theory, 2, pp. 244263. ATKINSON, A.B. (1996) Seeking to explain the distribution of income, in HILLS, J. (Ed) New Inequalities. The Changing Distribution of Income and the Wealth in the United Kingdom, pp. 1948, Cambridge: Cambridge University Press. ATKINSON, A.B. (2004) Increased income inequality in OECD Countries and the redistributive impact of the Government budget, in G. A. CORNIA (Ed) Inequality, Growth, and Poverty in an Era of Liberalization and Globalization, pp. 221248, Oxford: Oxford University Press. ATKINSON, A.B. and BOURGUIGNON, F. (2000) Introduction: income distributions and economics, in A.B. ATKINSON and F. BOURGUIGNON (Eds) Handbook of Income Distribution, pp. 158, Amsterdam: NorthHolland  Elsevier Science. AUDET, M., BOCCANFUSO, D. and MAKDISSI, P. (2008) A model of horizontal inequality, Applied Economic Letters, 15, pp. 469471. BARRO, R.J. (2000) Inequality and growth in a panel of countries, Journal of Economic Growth, 112, pp. 532. BENABOU, R. (1996) Inequality and growth, in B.S. BERNANKE and J.J. ROTEMBERG (Eds) NBER Macroeconomics Annual 1996, pp. 1174, Cambridge: MIT Press. BERTOLA, G. (2000) Macroeconomic of distribution and growth, in A.B. ATKINSON and F. BOURGUIGNON (Eds) Handbook of Income Distribution, pp. 477540, NorthHolland: Elsevier Science. BLUNDELL, R. and STOKER T.M. (1995) Heterogeneity and aggregation, Journal of Economic Literature, 48, pp. 347391 BOURGUIGNON, F. and MORRISON, C. (2002) The size distribution of income among world citizens, 18201990, American Economic Review, 92, pp. 727744. BOWLES, S. and GINTIS, H. (2002) The inheritance of inequality, Journal of Economic Perspectives, 16, pp. 330. CHAMPERNOWNE, D.G (1973) The Distribution of Income Between Persons, Cambridge: Cambridge University Press. CHAMPERNOWNE, D.G. and COWELL, F.A. (1998) Economic Inequality and Income Distribution, Cambridge: Cambridge University Press. COWELL, F. A. (1995) Measuring Inequality (2nd edition), Hemel Hempstead: Harvester Wheatsheaf. COWELL, F.A. (2000) Measurement of inequality in A.B. ATKINSON and F. BOURGUIGNON (Eds) Handbook of Income Distribution, pp. 87166, Amsterdam: NorthHolland  Elsevier Science. DEININGER, K. and SQUIRE, L. (1996) A new data set measuring income inequality, The World Bank Economic Review, 24, pp. 565591 DOLLAR, D. and KRAAY, A. (2002) Growth is good for the poor, Journal of Economic Growth, 7, pp. 195225. FORBES, K.J. (2000) A Reassessment of the relationship between inequality and growth, American Economic Review, 90, pp. 869887. GARCIAPEÑALOSA, C. (1995) The paradox of education or the good side of inequality, Oxford Economic Papers, 47, pp. 265285. GERRING, J. (1999) What makes a concept good? A criteria framework for understanding concept formation in the social sciences, Polity, 31, pp. 357393. GERRING, J. (2005) Causation: a unified framework for the social sciences, Journal of Theoretical Politics, 17, pp.163198. HIRSCH, F. (1976) The Social Limits to Growth, New York: The Twenty Century Fund. HOLLAND, P.W. (1986) Statistics and causal inference, Journal of the American Statistical Association, 81, pp. 945960 HOWES, S. (1996) The influence of aggregation on the ordering of distributions, Economica, 63, pp. 253272. ISAAC, A.G. (2007) Inheriting inequality: institutional influences on the distribution of wealth, Journal of Post Keynesian Economics, 30, pp. 187203. JAYARAJ, D. and SUBRAMANIAN, S. (2006) Horizontal and vertical inequality: some interconnections and indicators, Social Indicators Research, 75, pp. 123139. KING, G., KEHOANE, R.O. and VERBA, S. (1994) Designing Social Inquiry: Scientific Inference in Qualitative Research, Princeton: Princeton University Press. KOENKER, R. (2005) Quantile Regression, Cambridge: Cambridge University Press. KOENKER, R and BASSETT, G. (1982) Tests of linear hypotheses and l1 estimation, Econometrica, 50, pp. 15771583. KUZNETS, S. (1955) Economic growth and income inequality, American Economic Review, 45, pp. 128. LAMBERT, P. (1989) The Distribution and Redistribution of Income, Cambridge: Basil Blackwell. LIPPI, M. and FORNI, M. (1998) Aggregation and the Microfoundations of Dynamic Macroeconomics, Oxford: Oxford University Press. MAHONEY, J. (2008) Toward a unified theory of causality, Comparative Political Studies, 41, pp. 412436. MAIR, P. (2008) Concept and concept formation, in D. DELLA PORTA and M. KEATING (Eds) Approaches and Methodologies in the Social Sciences, pp. 177197, Cambridge: Cambridge University Press. MILANOVIC, B. (2005) Worlds Apart. Measuring International and Global Inequality, Princeton: Princeton University Press. MILANOVIC, B. (2006) Global income inequality: what it is and why it matters, World and Policy Research Working Paper, 3865. MORAN, T.P. (2003) On the theoretical and methodological context of crossnational inequality data, International Sociology, 18, pp. 351378. PÈREZMORENO, S. (2009) An assessment of the causal relationship between growth and inequality in Spanish regions, European Planning Studies, 17, pp. 389400. PERSSON, T. and TABELLINI, G. (1994) Is inequality harmful for growth?, American Economic Review, 84, pp. 600621. PIRAINO, P. (2007) Comparable estimates of intergenerational income mobility in Italy, The B.E. Journal of Economic Analysis & Policy, 7, art. 1. PRAVEEN PARBTEEAH, K. and CULLEN, J.B. (2003) Social institutions and work centrality. Exploration beyond national culture, Organization Science, 14, pp. 138148. RAVAILLON, M. (2001) Growth, inequality and poverty: looking beyond averages, World Development, 29, pp. 18031815. RAVAILLON, M. and CHEN, S. (1997) What can new survey data tell us about recent changes in distribution and poverty? The World Bank Economic Review, 11, pp. 357382. RUCIMAN, W.G. (1966) Relative Deprivation and Social Justice, London: Routledge. RUNDE, J. (1998) Assessing casual economic explanation, Oxford Economic Papers, 50, pp. 151172. SABATINI, F. (2005) Un atlante del capitale sociale italiano, Working paper del Dipartimento di Economia Pubblica,Università La Sapienza, Roma SALAIMARTIN, X. (2006) The world distribution of income: falling poverty and convergence, Quarterly Journal of Economics, 121, pp. 351397. SARTORI, G. (1984) Social Science Concept: a Systematic Analysis, Beverly Hills: Sage. SARTORI, G. (2009a) Guidelines for concept analysis, in D.COLLIER and J. GERRING (Eds) Concepts and Methods in Social Sciences, pp. 97150, New York: Routledge. SARTORI, G. (2009b) Concept misformation in comparative politics, in D.COLLIER and J. GERRING (Eds) Concepts and Methods in Social Sciences, pp. 1343, New York: Routledge. SEN, A. (1973) On Economic Inequality, Oxford: Clarendon Press. SHADISH, S.R. (2010) Campbell and Rubin: a primer and comparison of their approaches to causal inference in field settings, Psychological Methods, 15, pp. 317. TEMPE, J. (1999) The new growth evidence, Journal of Economic Literature, 37, pp. 112156. WANG, Y.Q. and TSUI, K.Y. (2000) A new class of deprivationbased generalized Gini indices, Economic Theory, 16, pp. 363377. WEST, S.G. and THOEMMES, F., (2010) Campbell’s and Rubin’s perspective on Causal Inference, Psychological Methods, 15, pp. 1837. YITZHAKI, S. (1979) Relative deprivation and the Gini coefficient, Quarterly Journal of Economics, 93, pp.321324. 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/34365 