IDEAS home Printed from https://ideas.repec.org/p/cpd/pd2002/d3-1.html
   My bibliography  Save this paper

Statistical Measurement of Income Polarization. A cross-national comparison

Author

Listed:
  • Axel Schmidt

    (Seminar of Economic and Social Statistics, University of Cologne)

Abstract

While recent research on income polarization is based on only a few approaches, this paper portrays the major methods and applies each to income distributions of Germany (1984-2000) and the US (1984-1997) using the Cross-National Equivalent Files. In addition, statistical inference is provided via bootstrap techniques. Further, we combine kernel density estimation with a unimodality test. The empirical results reveal increasing polarization and inequality in the US while the corresponding figures remain almost constant for Germany.

Suggested Citation

  • Axel Schmidt, 2002. "Statistical Measurement of Income Polarization. A cross-national comparison," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D3-1, International Conferences on Panel Data.
  • Handle: RePEc:cpd:pd2002:d3-1
    as

    Download full text from publisher

    File URL: http://econpapers.repec.org/cpd/2002/95_Schmidt.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joan Esteban & Carlos Gradín & Debraj Ray, 2007. "An Extension of a Measure of Polarization, with an application to the income distribution of five OECD countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(1), pages 1-19, April.
    2. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    3. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    4. Christian Schluter, 1998. "Income Dynamics in Germany, the USA and the UK: Evidence from Panel Data," CASE Papers case08, Centre for Analysis of Social Exclusion, LSE.
    5. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-150, March-Apr.
    6. Christian Schluter, 1998. "Income Dynamics in Germany, the USA and the UK: Evidence from Panel Data," CASE Papers 008, Centre for Analysis of Social Exclusion, LSE.
    7. Schluter, Christian, 1998. "Income dynamics in Germany, the USA and the UK: evidence from panel data," LSE Research Online Documents on Economics 6527, London School of Economics and Political Science, LSE Library.
    8. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
    9. Conchita D’ambrosio, 2001. "Household Characteristics and the Distribution of Income In Italy: An Application of Social Distance Measures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 43-64, March.
    10. SOEP Group, 2001. "The German Socio-Economic Panel (GSOEP) after More than 15 Years: Overview," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 7-14.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ilaria Petrarca & Roberto Ricciuti, 2015. "Relative income distribution in six European countries: market and disposable income," LIS Working papers 629, LIS Cross-National Data Center in Luxembourg.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luis Ayala & Mercedes Sastre, 2004. "Europe vs. the United States: is there a trade-off between mobility and inequality?," Journal of Income Distribution, Ad libros publications inc., vol. 13(1-2), pages 4-4, March-Jun.
    2. Walter Bossert & William Schworm, 2008. "A Class of Two‐Group Polarization Measures," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1169-1187, December.
    3. Carlos Gradín & Máximo Rossi, 2006. "Income Distribution and Income Sources in Uruguay," Journal of Applied Economics, Taylor & Francis Journals, vol. 9(1), pages 49-69, May.
    4. Chiara Gigliarano & Karl Mosler, 2009. "Constructing indices of multivariate polarization," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(4), pages 435-460, December.
    5. Carlos Gradín & Máximo Rossi, 2001. "The distribution of income in Uruguay: the effects of economic and institutional reforms," Documentos de Trabajo (working papers) 0301, Department of Economics - dECON.
    6. Carlos Madeira, 2015. "Identification of Earning Dynamics using Rotating Samples over Short Periods: The Case of Chile," Working Papers Central Bank of Chile 754, Central Bank of Chile.
    7. Yoonseok Lee, Donggyun Shin, Kwanho Shin, 2013. "Social Consequences of Economic Segregation," Korean Economic Review, Korean Economic Association, vol. 29, pages 189-210.
    8. Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.
    9. Andrew J. Houtenville, 2001. "Income Mobility in the United States and Germany: A Comparison of Two Classes of Mobility Measures using the GSOEP, PSID, and CPS," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 59-65.
    10. Gornig, Martin & Goebel, Jan, 2018. "Deindustrialisation and the polarisation of household incomes: The example of urban agglomerations in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 790-806.
    11. Fedorov, Leonid, 2002. "Regional Inequality and Regional Polarization in Russia, 1990-99," World Development, Elsevier, vol. 30(3), pages 443-456, March.
    12. Chiara Assunta Ricci & Sergio Scicchitano, 2021. "Decomposing changes in income polarization by population group: what happened during the crisis?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 235-259, April.
    13. Joan Esteban & Debraj Ray, 2005. "A Comparison of Polarization Measures," Working Papers 310, Barcelona School of Economics.
    14. Satya R. Chakravarty & Amita Majumder & Sonali Roy, 2007. "A Treatment Of Absolute Indices Of Polarization," The Japanese Economic Review, Japanese Economic Association, vol. 58(2), pages 273-293, June.
    15. C�line Bonnefond & Matthieu Cl�ment, 2012. "An analysis of income polarisation in rural and urban China," Post-Communist Economies, Taylor & Francis Journals, vol. 24(1), pages 15-37, June.
    16. VAN KERM Philippe, 2002. "On the magnitude of income mobility in Germany," IRISS Working Paper Series 2002-03, IRISS at CEPS/INSTEAD.
    17. Satya Chakravarty & Bhargav Maharaj, 2012. "Ethnic polarization orderings and indices," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(1), pages 99-123, May.
    18. Joep Burger & Jacqueline Beuningen, 2020. "Measuring well-being dispersion on discrete rating scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 749-773, June.
    19. Ilaria Petrarca & Roberto Ricciuti, 2015. "Relative income distribution in six European countries: market and disposable income," LIS Working papers 629, LIS Cross-National Data Center in Luxembourg.
    20. Schettino, Francesco & Khan, Haider A., 2020. "Income polarization in the USA: What happened to the middle class in the last few decades?," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 149-161.

    More about this item

    Keywords

    Income polarization; bootstrap; kernel density estimation; unimodality test;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpd:pd2002:d3-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sune Karlsson (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.