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A behaviorally-based approach to measuring inequality

Author

Listed:
  • Robert Schoen

    (Pennsylvania State University)

  • Claudia Nau

    (Johns Hopkins University)

Abstract

The measurement of inequality is often made using observed population-based distributions, such as the distribution of income or the distribution of members of different groups across neighborhoods. Unfortunately, such distributions confound the behavior of a given year with earlier events that influence the composition of the population. Here, we advocate measuring inequality using current behavioral measures and their compositional implications, and show how such measures may be obtained from frequently available data. The approach is then applied to trends in inequality between men and women in the distribution of ages at death. Observed death distributions indicate that, since 1970, mortality in 4 Western countries experienced increases in inequality that recently leveled off. In contrast, life table death distributions, which solely reflect the implications of a given year’s mortality rates, reveal a peak in inequality followed (in 3 of the 4 countries) by appreciable declines. The results are insensitive to whether inequality is measured by entropy, the Gini Index, or the Index of Dissimilarity. However, the type of distribution analyzed---whether observed or behaviorally derived---can make a significant difference in the results obtained. Because behaviorally derived distributions reflect the inequality implications of actual behavior, they are recommended for greater use in analyses of inequality.

Suggested Citation

  • Robert Schoen & Claudia Nau, 2008. "A behaviorally-based approach to measuring inequality," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(49), pages 1727-1748.
    • Handle: RePEc:dem:demres:v:19:y:2008:i:49
    DOI: 10.4054/DemRes.2008.19.49
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    References listed on IDEAS

    as
    1. Vladimir Shkolnikov & Evgeny M. Andreev & Alexander Begun, 2003. "Gini coefficient as a life table function," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 8(11), pages 305-358.
    2. Brian Goesling & Glenn Firebaugh, 2004. "The Trend in International Health Inequality," Population and Development Review, The Population Council, Inc., vol. 30(1), pages 131-146, March.
    3. Jenkins, S., 1988. "The Measurement Of Economic Inequality," Papers 170, Australian National University - Department of Economics.
    4. Ryan D. Edwards & Shripad Tuljapurkar, 2005. "Inequality in Life Spans and a New Perspective on Mortality Convergence Across Industrialized Countries," Population and Development Review, The Population Council, Inc., vol. 31(4), pages 645-674, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    inequality; entropy; measurement; index of dissimilarity; Gini Index; behavior;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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