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Measuring Income Inequality in Euroland

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  • Miriam Beblo
  • Thomas Knaus

Abstract

In this paper we propose an aggregate measure of income inequality for the founding countries of the European Monetary Union. Applying the methodology of the Theil index we are able to derive a measure for Euroland as a whole by using complementary data from the European Community Household Panel and the Luxembourg Income Study. The property of additive decomposability allows us to determine each country's contribution as well as that of each demographic group to overall income inequality. In addition the impact of government transfers on this inequality measure is assessed.

Suggested Citation

  • Miriam Beblo & Thomas Knaus, 2001. "Measuring Income Inequality in Euroland," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 301-333, September.
    • Handle: RePEc:bla:revinw:v:47:y:2001:i:3:p:301-333
    DOI: 10.1111/1475-4991.00019
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