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A Proposal to Compare Consistently the Inequality Among the Poor

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  • Oihana Aristondo
  • Francisco J. Goerlich Gisbert
  • Casilda Lasso De La Vega

Abstract

type="main"> A poverty index should be sensitive to the number of poor people, the extent of the shortfall of the poor, and the inequality among the poor. A difficulty arises when inequality among the poor needs to be assessed. The inequality may be analyzed in terms of either incomes or gaps. Depending on what side we focus on, the inequality level comparisons may be contradictory. This paper proposes a reinterpretation of the inequality component involved in the decompositions of well-known poverty indices. The alternative indices we introduce measure equally the income and gap inequality among the poor. The comparisons in inequality as measured by these indices are then independent of the viewpoint. An empirical application illustrates the proposal.

Suggested Citation

  • Oihana Aristondo & Francisco J. Goerlich Gisbert & Casilda Lasso De La Vega, 2015. "A Proposal to Compare Consistently the Inequality Among the Poor," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 561-572, September.
    • Handle: RePEc:bla:revinw:v:61:y:2015:i:3:p:561-572
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    File URL: http://hdl.handle.net/10.1111/roiw.12086
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    References listed on IDEAS

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    1. Oihana Aristondo & Casilda Lasso De La Vega & Ana Urrutia, 2010. "A New Multiplicative Decomposition For The Foster–Greer–Thorbecke Poverty Indices," Bulletin of Economic Research, Wiley Blackwell, vol. 62(3), pages 259-267, July.
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