Papatheodorou, Christos and Pavlopoulos, Dimitris (2003): Accounting for inequality in the EU: Income disparities between and within member states and overall income inequality. Published in: CHER Working paper 9, CEPS/INSTEAD, Differdange, G.-D. Luxemburg (2003)
Download (292kB) | Preview
In fighting inequality and poverty in the EU emphasis has been placed in reducing differences between countries and/or regions regarding certain macroeconomic indicators, such as the GDP per capita. However, from a policy perspective it is important to know the extent to which overall inequality in the EU is attributed to inequality between the individual countries and the extent to which it is attributed to inequality within them. In addition, it is important to know the extent to which income disparities in each individual member state contribute to overall EU inequality. Following certain assumptions, hypotheses and alternative scenarios, this paper investigates the above questions, employing a decomposition analysis of inequality by population subgroup and utilizing data and information provided by the CHER programme. A number of alternative inequality indices were used to capture the different aspects of inequality and test the robustness of the estimates. The suggested typologies of welfare state regimes were also examined to explain the differences in income inequality between countries and their contribution to overall EU inequality. Policy analysts and policy makers could benefit greatly from such information in evaluating, designing and implementing interventions to deal with inequality and poverty in the EU.
|Item Type:||MPRA Paper|
|Original Title:||Accounting for inequality in the EU: Income disparities between and within member states and overall income inequality|
|Keywords:||Income inequality; decomposition analysis; welfare state regimes; EU|
|Subjects:||D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D - Microeconomics > D3 - Distribution
|Depositing User:||DIMITRIS PAVLOPOULOS|
|Date Deposited:||07 Oct 2006|
|Last Modified:||14 Nov 2016 19:47|
Anand, S. (1983): Inequality and Poverty in Malaysia: Measurement and Decomposition. Oxford: Oxford University Press. Arts, W. and Gelissen, J. (2002): "Three Worlds of Welfare Capitalism of More? A state-of-the-art report," Journal of European Social Policy,12, 137-158 Atkinson, A. B. (1983): The Economics of Inequality. Oxford: Clarendon Press. Atkinson, A. B., and F. Bourguignon (2000): Handbook of Income Distribution. Amsterdam: North Holland. Atkinson, A. B., L. Rainwater, and T. M. Smeeding (1995): Income Distribution in Oecd Countries: The Evidence from the Luxembourg Income Study (Lis). Paris: OECD. Bourguignon, F. (1979): "Decomposable Income Inequality Measures," Econometrica, 47, 901-920. Cowel, F. A. (1980): "On the Structure of Additive Inequality Measures," Review of Economic and Statistics, 47, 521-531. Cowel, F. A. (1988): "Inequality Decomposition: Three Bad Measures," Bulletin of Economic Research, 40, 309-312. Cowel, F. A. (1995): Measuring Inequality. London: Prentice Hall/ Harvester Wheatsheaf. Esping-Andersen, G. (1990): The Three Worlds of Welfare Capitalism. Cambridge: Polity Press. Esping-Andersen, G. (1996): "Welfare States Without Work: The Impasse of Labour Shedding and Familialism of Continental European Social Policy," in Welfare 24 States in Transition. National Adaptations in Global Economies, ed by G. Esping- Andersen. London: Sage. Esping-Andersen, G. (1999). Social Foundations of Postindustrial Economies. Oxford: Oxford University Press. EUROSTAT (2001): "ECHP UDB Manual, European Community Household Panel Longitudinal Users' Database, Waves 1 to 5, Survey Years 1994 to 1998.", Eurostat. Ferrera, M. (1996): "The "Southern Model" of Welfare in Social Europe," Journal of European Social Policy, 6, 17-37. Jenkins, S. P. (1991): "The Measurement of Income Inequality," in Economic Inequality and Poverty: International Perspectives, ed by L. Osberg. New York: M. E. Sharpe. Jenkins, S. P. (1995): "Accounting for Inequality Trends: Decomposition Analyses for the UK, 1971-86," Economica, 62, 29-63. Katrougalos, G. S. (1996): "The South European Welfare Model: The Greek of Welfare State in Search of an Identity," Journal of European Social Policy, 6, 39-60. Lambert, P. J. (1993): The Distribution and Redistribution of Income: A Mathematical Analysis. Manchester UK: Manchester University Press. Leibfried, S. (1992) "Towards a European Welfare State? On integrating Poverty Regimes into the European Community," in Social Policy in a Changing Europe, ed by Z. Ferge and J. E. Kolberg. Frankfurt am Main: Campus Verlag Muffels, R., and D. Fouarge (2001): "Working Profiles and Employment Regimes in European Panel Perspective," OSA-Working Paper WP2001-12. 25 Papatheodorou, C., P. Peristera and A. Kotsaki (2002): "Assessing Income Distribution Using Kernel Estimates: A Comparative Study in Five European Countries," PACO Research Paper, Document no 27. Luxembourg: CEPS/INSTEAD Sen, A. (1997): On Economic Inequality, expanded edn. Oxford: Clarendon Press. Shorrocks, A. (1980): "The Class of Additively Decomposable Inequality Measures," Econometrica, 48, 613-625. Shorrocks, A. (1984): "Inequality Decomposition by Population Subgroups," Econometrica, 52, 1369-1385. Smeeding, T. M. (1991): "Cross-national Comparisons of Inequality and Poverty Position", in Economic Inequality and Poverty: International Perspectives, ed by L. Osberg. New York: M. E. Sharpe. Vachris, M. A., and J. Thomas (1999): "International Price Comparisons Based on Purchasing Power Parities," Monthly Labor Review, 3-12.