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International Comparisons of Income Inequality: Tests for Lorenz Dominance across Nine Countries

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  • Bishop, John A
  • Formby, John P
  • Smith, W James

Abstract

This paper examines income inequality across nine countries using the Luxembourg Income Study data set. New statistical tests and comparability of data provide an exceptionally clear picture of relative income inequality. Only 4 comparisons out of a possible 108 cannot be ranked. In most cases, differences in the definition of the recipient unit make little difference in the rankings. Irrespective of recipient units, Sweden, Norway, and Germany come out at the top of the ordinal Lorenz ranking, with Australia, Canada, and the United Kingdom in the middle, and the United States and Switzerland at the bottom. Copyright 1991 by The London School of Economics and Political Science.

Suggested Citation

  • Bishop, John A & Formby, John P & Smith, W James, 1991. "International Comparisons of Income Inequality: Tests for Lorenz Dominance across Nine Countries," Economica, London School of Economics and Political Science, vol. 58(232), pages 461-477, November.
    • Handle: RePEc:bla:econom:v:58:y:1991:i:232:p:461-77
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    Cited by:

    1. Frank A. Cowell & Emmanuel Flachaire, 2014. "Statistical Methods for Distributional Analysis," Working Papers halshs-01115996, HAL.
    2. Lucio Bertoli-Barsotti & Marek Gagolewski & Grzegorz Siudem & Barbara .Zoga{l}a-Siudem, 2023. "Equivalence of inequality indices: Three dimensions of impact revisited," Papers 2304.07479, arXiv.org.
    3. Stephen P. Jenkins & Richard V. Burkhauser & Shuaizhang Feng & Jeff Larrimore, 2009. "Measuring Inequality Using Censored Data: A Multiple Imputation Approach," Discussion Papers of DIW Berlin 866, DIW Berlin, German Institute for Economic Research.
    4. Garry F. Barrett & Stephen G. Donald & Debopam Bhattacharya, 2014. "Consistent Nonparametric Tests for Lorenz Dominance," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 32(1), pages 1-13, January.
    5. Hongyi Jiang & Zhenting Sun & Shiyun Hu, 2023. "A Nonparametric Test of $m$th-degree Inverse Stochastic Dominance," Papers 2306.12271, arXiv.org, revised Jul 2023.
    6. Stephen P. Jenkins & Richard V. Burkhauser & Shuaizhang Feng & Jeff Larrimore, 2011. "Measuring inequality using censored data: a multiple‐imputation approach to estimation and inference," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(1), pages 63-81, January.
    7. Cowell, Frank & Victoria-Feser, Maria-Pia, 1998. "Statistical inference for Lorenz curves with censored data," LSE Research Online Documents on Economics 2049, London School of Economics and Political Science, LSE Library.
    8. Paolo Figini, 2000. "Measuring Inequality: On the Correlation Between Indices," LIS Working papers 229, LIS Cross-National Data Center in Luxembourg.
    9. van Doorslaer, Eddy & Wagstaff, Adam & Bleichrodt, Han & Calonge, Samuel & Gerdtham, Ulf-G. & Gerfin, Michael & Geurts, Jose & Gross, Lorna & Hakkinen, Unto & Leu, Robert E., 1997. "Income-related inequalities in health: some international comparisons," Journal of Health Economics, Elsevier, vol. 16(1), pages 93-112, February.
    10. James B. Davies & Nicole M. Fortin & Thomas Lemieux, 2017. "Wealth inequality: Theory, measurement and decomposition," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1224-1261, December.
    11. María Margarita Bahamón & Juana Domínguez & José Javier Núñez, 2013. "La pobreza en Colombia, 2001-2005. Curvas globales, dominancia y aspectos inferenciales," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 15(29), pages 149-167, July-Dece.
    12. Lucio Bertoli-Barsotti & Marek Gagolewski & Grzegorz Siudem & Barbara .Zoga{l}a-Siudem, 2023. "Gini-stable Lorenz curves and their relation to the generalised Pareto distribution," Papers 2304.07480, arXiv.org, revised Jan 2024.
    13. Jirada Prasartpornsirichoke & Yoshi Takahashi & Peera Charoenporn, 2012. "The Ranking of Inequality in Human Capital: Evidence from Asian Countries," IDEC DP2 Series 2-14, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    14. Stephen G. Donald & Yu‐Chin Hsu & Garry F. Barrett, 2012. "Incorporating covariates in the measurement of welfare and inequality: methods and applications," Econometrics Journal, Royal Economic Society, vol. 15(1), pages 1-30, February.
    15. García-Pérez, Carmelo & Prieto-Alaiz, Mercedes & Simón, Hipólito, 2020. "Multidimensional measurement of precarious employment using hedonic weights: Evidence from Spain," Journal of Business Research, Elsevier, vol. 113(C), pages 348-359.
    16. Ulf-G. Gerdtham & Magnus Johannesson, 2004. "Absolute Income, Relative Income, Income Inequality, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
    17. Patrick Moyes & Stephen Bazen, 2003. "International Comparisons of Income Distribution," LIS Working papers 341, LIS Cross-National Data Center in Luxembourg.
    18. John Bishop & K. Chow & John Formby & Chih-Chin Ho, 1997. "Did Tax Reform Reduce Actual US Progressivity? Evidence from the Taxpayer Compliance Measurement Program," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 4(2), pages 177-197, May.
    19. J. Richard Hill & Peter A. Groothuis, 2001. "The New NBA Collective Bargaining Agreement, the Median Voter Model, and a Robin Hood Rent Redistribution," Journal of Sports Economics, , vol. 2(2), pages 131-144, May.

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