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Measuring inequality in the presence of intra-household correlation

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  • Martin Biewen

Abstract

This note develops a method for computing confidence intervals for estimates of decomposable inequality indices when the sample is characterized by contemporaneous dependence across members of the same household. This is particularly relevant in the context of measuring inequality among wage earners. An application to the German wage distribution shows that the error made by not taking into account intra-household correlation is probably small in practical applications.

Suggested Citation

  • Martin Biewen, 2002. "Measuring inequality in the presence of intra-household correlation," Applied Economics Letters, Taylor & Francis Journals, vol. 9(15), pages 1003-1006.
    • Handle: RePEc:taf:apeclt:v:9:y:2002:i:15:p:1003-1006
    DOI: 10.1080/13504850210148170
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    References listed on IDEAS

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    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
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    Cited by:

    1. Juan Ramón García López, "undated". "El diseño complejo de la encuesta de estructura salarial 1995: Implicaciones sobre la estimación de medidas de desigualdad," Working Papers 2003-24, FEDEA.
    2. Juan Ramón García, "undated". "La desigualdad salarial en España. Efectos de un diseño muestral complejo," Working Papers 2003-26, FEDEA.
    3. C. Chameni Nembua, 2007. "The multi-decomposition of the Hirschman-Herfindahl index: measuring household inequality in Cameroon, 1996-2001," Applied Economics Letters, Taylor & Francis Journals, vol. 14(1), pages 27-34.

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