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Median Income Versus Per Capita Income: Implications for Assessing Growth and Convergence

Author

Listed:
  • Levy, A.

Abstract

When the distribution of income is skewed, median income is a better indicator of theearnings of the representative memeber of society than the commonly used per capita income. Median income is linked to per capita income and the disparity in income-generating assets' ownership. While ownership identity is only imporatnt in the determination of the size of the change in per capita income, it is crucial for determining both the direction and the magnitude of changes inmedian income and, thereby, the prospects of growtand convergence in median income-centred analyses.

Suggested Citation

  • Levy, A., 1997. "Median Income Versus Per Capita Income: Implications for Assessing Growth and Convergence," Economics Working Papers wp97-7, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp97-7
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    More about this item

    Keywords

    INCOME DISTRIBUTION ; ECONOMIC GROWTH;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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