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Within-Group Inequality in Cross-National Perspective

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  • Tom VanHeuvelen

Abstract

In this research I assess within-group inequality—inequality occurring among otherwise similar individuals based on observed characteristics—in a cross-national comparative perspective. While scholarly interest in the within-group portion of inequality has grown over the past 25 years, virtually all studies focus on the US case. The current research shifts focus by assessing within-group inequality in a cross-national comparative study. I do so by constructing a unique dataset of country-level measures of within- and between-group inequality for annual market earnings using LIS microdata from 1.36 million full-time prime-age male and female workers nested in 143 country-years, drawn from 28 countries spanning 40 years. I then document and describe basic between-country and longitudinal trends in the relationship between total inequality and within-group inequality. I find that in nearly all countries in the LIS, within-group inequality is the primary driver of levels and trends in inequality. As inequality increases, so too does the relative importance of within-group inequality. However, institutional contexts matter, as continental European countries have lower relative and absolute levels of within-group inequality, independent of a variety of economic and human capital factors. Theoretical and substantive implications are discussed.

Suggested Citation

  • Tom VanHeuvelen, 2018. "Within-Group Inequality in Cross-National Perspective," LIS Working papers 744, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:744
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