New approach to measuring income inequality
We show that the conventional income inequality indexes assess income inequality incorrectly because of three problems. The unequally distributed (UD) income-based approach solves the problems, decomposes income inequality into two kinds of departure from equality, and provides two indexes. The comp...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-02-01
|
| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024025131 |
| _version_ | 1797267682242854912 |
|---|---|
| author | Youngsoon Kim Joongyang Park Ae-Jin Ju |
| author_facet | Youngsoon Kim Joongyang Park Ae-Jin Ju |
| author_sort | Youngsoon Kim |
| collection | DOAJ |
| description | We show that the conventional income inequality indexes assess income inequality incorrectly because of three problems. The unequally distributed (UD) income-based approach solves the problems, decomposes income inequality into two kinds of departure from equality, and provides two indexes. The comprehensive assessment of income inequality requires the integration of two kinds of departure. This paper proposes the relative UD (RUD) income-based approach. The RUD income-based approach combines the cumulative distribution function and quantile function of the RUD income and produces a new index integrating two kinds of departure. We investigate the properties of the new index and demonstrate its applicability through example income distributions. |
| first_indexed | 2024-03-07T22:01:18Z |
| format | Article |
| id | doaj.art-912670047baa4a4b8cb26c5f61bb356f |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-04-25T01:20:28Z |
| publishDate | 2024-02-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-912670047baa4a4b8cb26c5f61bb356f2024-03-09T09:28:23ZengElsevierHeliyon2405-84402024-02-01104e26482New approach to measuring income inequalityYoungsoon Kim0Joongyang Park1Ae-Jin Ju2Department of Information and Statistics, Gyeongsang National University, 501 Jinju-daero, Jinju-si, Gyeongsangnam-do, 52828, Republic of KoreaDepartment of Information and Statistics, Gyeongsang National University, 501 Jinju-daero, Jinju-si, Gyeongsangnam-do, 52828, Republic of Korea; Corresponding author.Department of Information and Statistics, Graduate School, Gyeongsang National University, 501 Jinju-daero, Jinju-si, Gyeongsangnam-do, 52828, Republic of KoreaWe show that the conventional income inequality indexes assess income inequality incorrectly because of three problems. The unequally distributed (UD) income-based approach solves the problems, decomposes income inequality into two kinds of departure from equality, and provides two indexes. The comprehensive assessment of income inequality requires the integration of two kinds of departure. This paper proposes the relative UD (RUD) income-based approach. The RUD income-based approach combines the cumulative distribution function and quantile function of the RUD income and produces a new index integrating two kinds of departure. We investigate the properties of the new index and demonstrate its applicability through example income distributions.http://www.sciencedirect.com/science/article/pii/S2405844024025131Cumulative distribution functionIncome inequalityNormProgressive transferQuantile functionUnequally distributed income |
| spellingShingle | Youngsoon Kim Joongyang Park Ae-Jin Ju New approach to measuring income inequality Heliyon Cumulative distribution function Income inequality Norm Progressive transfer Quantile function Unequally distributed income |
| title | New approach to measuring income inequality |
| title_full | New approach to measuring income inequality |
| title_fullStr | New approach to measuring income inequality |
| title_full_unstemmed | New approach to measuring income inequality |
| title_short | New approach to measuring income inequality |
| title_sort | new approach to measuring income inequality |
| topic | Cumulative distribution function Income inequality Norm Progressive transfer Quantile function Unequally distributed income |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024025131 |
| work_keys_str_mv | AT youngsoonkim newapproachtomeasuringincomeinequality AT joongyangpark newapproachtomeasuringincomeinequality AT aejinju newapproachtomeasuringincomeinequality |