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Ordinal multidimensional inequality: theory and application to the 2x2 case

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  • Sonne-Schmidt, Christoffer
  • Tarp, Finn
  • Peter, Lars

Abstract

This paper develops a method for ordinal comparison of multidimensional inequality. In our model, one distribution is more unequal than another when the distributions have common arithmetic median and the first can be obtained from second by one or more elementary shifts in population density that increase inequality. For the benchmark 2x2 case (i.e. the case of two binary outcome variables), we derive an empirical approach to making ordinal inequality comparisons. As an illustration, we apply the model to childhood poverty in Mozambique.

Suggested Citation

  • Sonne-Schmidt, Christoffer & Tarp, Finn & Peter, Lars, 2011. "Ordinal multidimensional inequality: theory and application to the 2x2 case," MPRA Paper 72838, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:72838
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    Cited by:

    1. Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.

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    More about this item

    Keywords

    Qualitative data; multidimensional first order dominance; multidimensional inequality; ordinal comparison;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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