Tuesday, October 2, 2007

[EQ] Income inequality measures

Income inequality measures

Fernando G De Maio, Department of Sociology and Anthropology, Simon Fraser University, British Columbia, Canada
Journal of Epidemiology and Community Health; October 2007 (Volume 61, Number 10)

Website:
http://jech.bmj.com/cgi/content/full/61/10/849

"....The Gini coefficient has been the most popular method for operationalising income inequality in the public health literature. However, a number of alternative methods exist, and they offer researchers the means to develop a more nuanced understanding of the distribution of income. Income inequality measures such as the generalised entropy index and the Atkinson index offer the ability to examine the effects of inequalities in different areas of the income spectrum, enabling more meaningful quantitative assessments of qualitatively different inequalities. This glossary provides a conceptual introduction to these and other income inequality measures...."

Gini coefficient, By far the most popular measure of income inequality, the Gini coefficient1518 is derived from the Lorenz curve framework . The Lorenz curve shows the percentage of total income earned by cumulative percentage of the population.

Atkinson index More precisely labelled a family of income inequality measures

Coefficient of variation (CV) This measure of income inequality is calculated by the dividing the standard deviation of the income distribution by its mean.

Decile ratios A simple but effective way to examine income inequality is to calculate decile ratios.

Generalised entropy (GE) index

Kakwani progressivity index, builds from the Gini framework.

Proportion of total income earned. The proportion of income received by the poorest nth% of the population is one of the most intuitive measures of income inequality.

Robin Hood index, also known as the Pietra ratio

Sen poverty measure, incorporates the Gini coefficient for people living below the poverty line along with the headcount ratio of poverty and the average income of those below the poverty line...."

 

*...*...*...*...*...*     
This message from the Pan American Health Organization, PAHO/WHO, is part of an effort to disseminate
information Related to: Equity; Health inequality; Socioeconomic inequality in health; Socioeconomic
health differentials; Gender; Violence; Poverty; Health Economics; Health Legislation; Ethnicity; Ethics;
Information Technology - Virtual libraries; Research & Science issues.  [DD/ IKM Area] 

“Materials provided in this electronic list are provided "as is". Unless expressly stated otherwise, the findings
and interpretations included in the Materials are those of the authors and not necessarily of The Pan American
Health Organization PAHO/WHO or its country members”.

---------------------------------------------------------------------------------------------------

PAHO/WHO Website: 
http://www.paho.org/ 
EQUITY List - Archives - Join/remove: http://listserv.paho.org/Archives/equidad.html

 
    IMPORTANT: This transmission is for use by the intended recipient and it may contain privileged, proprietary or confidential information. If you are not the intended recipient or a person responsible for delivering this transmission to the intended recipient, you may not disclose, copy or distribute this transmission or take any action in reliance on it. If you received this transmission in error, please notify us immediately by email to infosec@paho.org, and please dispose of and delete this transmission. Thank you.  

No comments: