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Polarization, growth and social policy in the case of Israel, 1997-2008

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  • García-Fernández, Rosa María
  • Gottlieb, Daniel
  • Palacios-González, Frederico

Abstract

In this paper we study income polarization by first comparing the efficiency of two statistical models to identify the number of poles in the income distribution empirically. The statistical models used are a multi-resolution analysis (MRA) and a log-normal approach (LNA). We then apply the methodology to Israeli income data over the years 1997-2008 in order to empirically detect the number of income classes as sub-populations of incomes concentrated around an optimally determined number of poles. After that we compute polarization using a multiplicative normalized polarization measure, developed by Palacios-González and García-Fernández (An Intra-Group Variance Based Polarization Measure, 2010), which consists of three interacting components based on well-known axioms of Esteban and Ray (Extensions of a Measure of Polarization OCDE Countries, 1994). Finally we study the causes of the obtained polarization results in a multinomial logit analysis.

Suggested Citation

  • García-Fernández, Rosa María & Gottlieb, Daniel & Palacios-González, Frederico, 2013. "Polarization, growth and social policy in the case of Israel, 1997-2008," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-40.
    • Handle: RePEc:zbw:ifweej:201315
    DOI: 10.5018/economics-ejournal.ja.2013-15
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    Cited by:

    1. Federico Palacios-González & Rosa M. García-Fernández, 2020. "A faster algorithm to estimate multiresolution densities," Computational Statistics, Springer, vol. 35(3), pages 1207-1230, September.
    2. Louis Chauvel, 2016. "The Intensity and Shape of Inequality: The ABG Method of Distributional Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(1), pages 52-68, March.
    3. Tuyen, Tran Quang, 2014. "The Impact Of Farmland Loss On Income Distribution Of Households In Hanoi'S Peri-Urban Areas, Vietnam," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 55(2), pages 189-206, December.
    4. Louis Chauvel, 2014. "The Intensity and Shape of Inequality: The ABG Method of Distributional Analysis," LIS Working papers 609, LIS Cross-National Data Center in Luxembourg.
    5. Nartikoev, Alan & Peresetsky, Anatoly, 2020. "Эндогенная Классификация Домохозяйств В Регионах России [Endogenous household classification: Russian regions]," MPRA Paper 104351, University Library of Munich, Germany.

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    More about this item

    Keywords

    polarization; poverty; multiresolution analysis; income distribution;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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