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

Paul Glewwe

doi:10.1016/0047-2727(91)90026-X

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

Paul Glewwe

Applied Economics

Research output: Contribution to journal › Article › peer-review

39 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 language	English (US)
Pages (from-to)	211-216
Number of pages	6
Journal	Journal of Public Economics
Volume	44
Issue number	2
DOIs	https://doi.org/10.1016/0047-2727(91)90026-X
State	Published - Mar 1991

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

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

Abstract

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