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Visualizing and Testing Convergence Between Two Income Distributions

Author

Listed:
  • John A. Bishop

    (East Carolina University)

  • K. Victor Chow

    (West Virginia University)

  • Lester A. Zeager

    (East Carolina University)

Abstract

We use the Interdistributional Lorenz Curves (ILCs) of Butler and McDonald (1987) to visualize convergence or divergence between income distributions. To illustrate the idea, we compare income distributions from Spain, Italy, and Germany. We also offer methods to test for significant differences between the 45-degree line and an ILC, or between ILCs in different years. The tests apply to any partial moment of the distributions and impose no prior restrictions on the functional form of the underlying distribution. We illustrate the statistical inference tests by an application to income distributions for whites and non-whites in the United States.

Suggested Citation

  • John A. Bishop & K. Victor Chow & Lester A. Zeager, 2010. "Visualizing and Testing Convergence Between Two Income Distributions," Journal of Income Distribution, Ad libros publications inc., vol. 19(1), pages 2-19, March.
    • Handle: RePEc:jid:journl:y:2010:v:19:i:1:p:2-19
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    File URL: http://pi.library.yorku.ca/ojs/index.php/jid/article/viewFile/4843/23745
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    Citations

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    Cited by:

    1. John A. Bishop & Jonathan M. Lee & Lester A. Zeager, 2014. "The Great Recession and U.S. partial discrimination orderings by race," Economics and Business Letters, Oviedo University Press, vol. 3(3), pages 146-155.

    More about this item

    Keywords

    Income distribution; Inequality; Convergence; Interdistributional Lorenz Curves; Statistical inference;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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