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Income-Factor Polarization: A Methodological Approach

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  • Marco Ranaldi

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We here propose a novel method for the analysis of the distribution of two sources of income across the population. The polarization curve for each income source is defined and compared to the Zero-polarization Curve. The latter provides a benchmark of zero inequality in income composition. We then illustrate the method via an empirical application to the case of Italy.

Suggested Citation

  • Marco Ranaldi, 2017. "Income-Factor Polarization: A Methodological Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01660913, HAL.
  • Handle: RePEc:hal:cesptp:halshs-01660913
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01660913
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    References listed on IDEAS

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    1. Frank A. Cowell & Emmanuel Flachaire, 2014. "Statistical Methods for Distributional Analysis," Working Papers halshs-01115996, HAL.
    2. A. B. Atkinson, 2009. "Factor shares: the principal problem of political economy?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(1), pages 3-16, Spring.
    3. Cowell, F.A., 2000. "Measurement of inequality," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 2, pages 87-166, Elsevier.
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    Cited by:

    1. Marco Ranaldi, 2016. "On the Measurement of Functional Income Distribution," Documents de travail du Centre d'Economie de la Sorbonne 16051rr, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Feb 2018.

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