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Income Inequality And Selected Methods Of Its Measurement With The Use Of Practical Data For International Comparison

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  • Pavlína Hejduková

    (University of West Bohemia, Faculty of Economics)

  • Lucie Kureková

    (University of Economics in Prague, Faculty of Economics)

Abstract

This study defines the possible approaches which are used for the measurement and comparison of income inequality. It discusses the usability of these approaches and points to selected indicators of income inequality at the level of international comparison and also identifies the factors that cause income inequality. The aim of this study is to describe the relationship between customary indicators of inequality and an alternative indicator. Data was used from nine European countries and two data sources were combined: the OECD and ESS. The final data set contained 16 686 observations. By verifying the compliance of relative frequencies, the difference between countries was demonstrated to the degree of agreement with the reduction in income inequality. The results of the test on the compliance of relative frequencies allowed us to consider the question of the monotonic trend of population relative frequency. It turned out that the rate of agreement to reduce the income gap with increasing income inequality increased.

Suggested Citation

  • Pavlína Hejduková & Lucie Kureková, 2017. "Income Inequality And Selected Methods Of Its Measurement With The Use Of Practical Data For International Comparison," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(2), pages 68-81, November.
    • Handle: RePEc:sek:jijoes:v:6:y:2017:i:2:p:68-81
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    More about this item

    Keywords

    Approaches; Income; Inequality; Index; Measuring; Indicators; Factors;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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