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Analysis of Household Income in Poland Based on the Zenga Distribution and Selected Income Inequality Measure

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  • Trzcińska Kamila

    (University of Lodz, Department of Statistics and Demography, Rewolucji 1905 r. 41, 92-2014Lodz, Poland)

Abstract

Research background: A lot of research has been directed at describing empirical distributions by using a theoretical model. In the literature there are proposals for various types of mathematical functions. In 2010 Zenga proposed a new three-parameter model for economic size distribution which possesses interesting statistical properties which can be used to model income, wealth and financial variables.Purpose: The aim of this paper is to apply the Zenga model to income distributions in Poland by voivodeship.Research methodology: The basis for the calculations presented in the paper has been based on the individual data coming from a random sample obtained within a Household Budget Survey conducted by the central Statistical Office in the year 2014. The parameters estimates of the Zenga distribution were obtained by means of the D’Addario’s invariants methods, mainly with the Pietra index.Results: The results of the conducted approximations, presented in the paper confirmed the good consistency of the Zenga distribution with the empirical income distribution in Poland, both in total and for households.Novelty: The study contributed to the application of a new three-parameter income distribution model to describe income distributions in Poland.

Suggested Citation

  • Trzcińska Kamila, 2020. "Analysis of Household Income in Poland Based on the Zenga Distribution and Selected Income Inequality Measure," Folia Oeconomica Stetinensia, Sciendo, vol. 20(1), pages 421-436, June.
    • Handle: RePEc:vrs:foeste:v:20:y:2020:i:1:p:421-436:n:25
    DOI: 10.2478/foli-2020-0025
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    References listed on IDEAS

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    1. Łukasiewicz, Piotr & Orłowski, Arkadiusz, 2004. "Probabilistic models of income distributions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 146-151.
    2. Michał Brzeziński, 2013. "Parametric Modelling of Income Distribution in Central and Eastern Europe," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 5(3), pages 207-230, September.
    3. Francesco Porro, 2015. "Zenga Distribution and Inequality Ordering," Communications in Statistics - Theory and Methods, Taylor & Francis Journals, vol. 44(18), pages 3967-3977, September.
    4. Alberto Arcagni & Francesco Porro, 2013. "On the parameters of Zenga distribution," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 22(3), pages 285-303, August.
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    More about this item

    Keywords

    income distribution; Zenga distribution; the Gini income inequality index; the Zenga income inequality index;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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