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Income growth with high inequality implies loss of well-being: A mathematical model

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  • Fernando C'ordova-Lepe

Abstract

A mathematical model of measurement of the perception of well-being for groups with increasing incomes, but proportionally unequal is proposed. Assuming that welfare grows with own income and decreases with relative inequality (income of the other concerning one's own), possible scenarios for long-term behavior in welfare functions are concluded. Also, it is proved that a high relative inequality (parametric definition) always implies the loss of the self-perception of the well-being of the most disadvantaged group.

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  • Fernando C'ordova-Lepe, 2019. "Income growth with high inequality implies loss of well-being: A mathematical model," Papers 1911.11205, arXiv.org.
    • Handle: RePEc:arx:papers:1911.11205
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    3. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    4. -, 1990. "La pobreza en Chile en 1990," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34847, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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