Household equivalence scales and the measurement of inequality. Transfers from the poor to the rich could decrease inequality

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33 Scopus citations

Abstract

The use of equivalence scales when measuring income inequality can lead to the paradoxical result that transferring money from poor to wealthy households may reduce measured inequality. This paper explains this result and restates the Pigou-Dalton transfer axiom in a way that gets around this counterintuitive outcome.

Original languageEnglish (US)
Pages (from-to)211-216
Number of pages6
JournalJournal of Public Economics
Volume44
Issue number2
DOIs
StatePublished - Mar 1991

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