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DUAL‐INDEX MEASUREMENT OF INCOME INEQUALITY
Author(s) -
Park Joongyang,
Kim YoungSoon,
Heo Seonja
Publication year - 2018
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12141
Subject(s) - index (typography) , dispersion (optics) , economics , economic inequality , inequality , econometrics , income distribution , dual (grammatical number) , distribution (mathematics) , income inequality metrics , index of dispersion , gini coefficient , mathematics , statistics , computer science , physics , population , mathematical analysis , art , poisson regression , demography , literature , sociology , world wide web , optics
This study introduces the concept of unequally distributed income and proposes a dual‐index measurement of income inequality that evaluates the magnitude and dispersion of unequally distributed income. We use the Rawlsian index as a magnitude index and employ current income inequality indices as a dispersion index. We describe the properties of the Rawlsian and dispersion indices, and apply these indices to real income data. Further, we show that the Gini dispersion index is a weighted average of Rawlsian indices for the sub‐distributions of the unequally distributed income distribution.