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Inequality Generating Processes and Measurement of the Matthew Effect

Author

Listed:
  • Bask, Miia

    (Karlstad University)

  • Bask, Mikael

    (Department of Economics)

Abstract

The first aim of this paper is to clarify the differences and relationships between cumulative advantage/disadvantage and the Matthew effect. Its second aim, which is also its main contribution, is not only to present a new measure of the Matthew effect, but also to show how to estimate this effect from data and how to make statistical inference. We argue that one should utilize the positivity of the natural logarithm of the largest generalized eigenvalue for a non-linear dynamic process as evidence when claiming that the Matthew effect is present in the dynamic process that generates individuals’ socio-economic life-courses. Thus, our measure of the Matthew effect focuses on the dynamic process that generates socio-economic inequality and not on the outcome of this process.

Suggested Citation

  • Bask, Miia & Bask, Mikael, 2010. "Inequality Generating Processes and Measurement of the Matthew Effect," Working Paper Series 2010:19, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:2010_019
    as

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    File URL: http://uu.diva-portal.org/smash/get/diva2:360148/FULLTEXT01.pdf
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    References listed on IDEAS

    as
    1. Simón Sosvilla-Rivero & Fernando Fernández-Rodriguez & Julián Andrada-Félix, 2005. "Testing chaotic dynamics via Lyapunov exponents," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(7), pages 911-930.
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    Cited by:

    1. Miia Bask, 2011. "Cumulative Disadvantage and Connections Between Welfare Problems," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 103(3), pages 443-464, September.

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    More about this item

    Keywords

    Cumulative advantage; cumulative disadvantage; dynamic process; inequality; inter-individual change; intra-individual change; life-course; Matthew effect; socio-economic status;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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