The Mathematical Relation Between the Income Density Function and the Measurement of Income Inequality

Levine, Daniel B.; Singer, Neil M.

doi:10.2307/1913013

Cited by 12 publications

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“…Remember (8). It follows that, for values of low enough, the second term in (23) is close enough to zero, the signal of…”

Section: Propositionmentioning

confidence: 95%

“…The following lines pursue a general expression for the Lorenz curve and for the Gini coe¢ cient as a function of any arbitrary distribution of wage o¤ers F w (:): First, in Proposition 1, we use a general procedure detailed by Levine and Singer (1970) to show that the area under the Lorenz Curve can be directly expressed in terms of f p (s) only. Proposition 2 then uses the result of Proposition 1 and the expression of f p (s) given by (4) to determine the area under the Lorenz curve and, by (15), the Gini coe¢ cient of wage distribution as well.…”

Section: The Gini Coe¢ Cientmentioning

confidence: 99%

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On the Positive Correlation between Income Inequality and Unemployment

Cysne

2009

Review of Economics and Statistics

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Two papers published in this Journal (Jantti (1994) and Mocan (1999)), among others, …nd empirical evidence that "increases in structural unemployment have a substantial aggravating impact on income inequality". The main point of this work is to show that standard I am thankful to Paulo Klinger Monteiro, to the Referees and to participants of workshops at the Department of Economics of the University of Chicago and at the Getulio Vargas Foundation Graduate School of Economics, for their valuable comments. Key Words: Unemployment, Gini, Inequality, Income Distribution, Search Theory. JEL: J30, I30, D33.y Professor at the Graduate School of Economics of the Getulio Vargas Foundation (EPGE/FGV). E mail: rubens@fgv.br 1 job-search models can help us understand this empirical regularity.As a by-product of the analysis, the paper also provides a closed-form general expression which enables direct calculation of the Gini coe¢ -cient of wage-income inequality as a function of any arbitrary initial distribution of wage o¤ers. Three numerical examples illustrate the results.

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“…Remember (8). It follows that, for values of low enough, the second term in (23) is close enough to zero, the signal of…”

Section: Propositionmentioning

confidence: 95%

Section: The Gini Coe¢ Cientmentioning

confidence: 99%

On the Positive Correlation between Income Inequality and Unemployment

Cysne

2009

Review of Economics and Statistics

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“…The next lines pursue an expression for the Lorenz curve as a function of f p ; which is known. This will allow us to characterize what happens with the Gini coe¢ cient of income inequality when the parameters and change, given the measure m w :The procedure detailed by Levine and Singer (1970) can be useful here.…”

Section: A General Expression For the Gini Coe¢cientmentioning

confidence: 99%

On the Positive Correlation between Income Inequality and Unemployment

Cysne

2004

SSRN Journal

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Several empirical studies in the literature have documented the existence of a positive correlation between income inequalitiy and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under uncertainty. I start by proving the uniqueness of a stationary distribution of wages in the economy. Drawing upon this distribution, I provide a general expression for the Gini coe¢ cient of income inequality. The expression has the advantage of not requiring a particular speci…cation of the distribution of wage o¤ers. Next, I show how the Gini coe¢ cient varies as a function of the parameters of the model, and how it can be expected to be positively correlated with the rate of unemployment. Two examples are o¤ered. The …rst, of a technical nature, to show that the convergence of the measures implied by the underlying Markov process can fail in some cases. The second, to provide a quantitative assessment of the model and of the mechanism linking unemployment and inequality. I thank the participants of workshops at the Department of Economics of the University of Chicago and at the Getulio Vargas Foundation Graduate School of Economics for their comments.

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“…La literatura (Latham, 1988;Levine-Singer, 1970) muestra que la aplicación de un impuesto proporcional mantiene la desigualdad inalterada; qué significa esto, si el gobierno quiere cambiar la estructura impositiva con algún objetivo: una mejor distribución o un mayor crecimiento (Alesina-Rodrik, 1994), habría que considerar no afectar a la totalidad y mostrar al menos que se sigue perteneciendo a cierto sector de la población. Pero aún más grave, habría que tener cuidado a la hora de la aplicación de esta política de impuestos, es decir, evitar un posible conflicto por el hecho de que la sociedad pague tal impuesto.…”

Section: Introductionunclassified

Condiciones de la política de impuestos para mantener la polarización y la desigualdad

Rosas

2016

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EconoQuantum / Vol. 13. Núm. 2 n 33Condiciones de la política de impuestos para mantener la polarización y la desigualdad luIs antonIo andrade rosas 1 n Resumen: La polarización es una medida que representa la desigualdad entre grupos. Una característica de estos grupos es el nivel de identificación grupal. Si no existiera tal identificación, polarización y desigualdad coincidirían. Este trabajo muestra las condiciones que debe satisfacer una política proporcional de impuestos para mantener el grado de polarización. 2 La literatura muestra que la desigualdad se mantiene, sin embargo, para mantener la polarización, las políticas impositivas son especiales y son más estrictas cuando el grado de identificación grupal va en aumento. Destaca finalmente la creación de políticas negativas para mantener la polarización, en particular llamadas subsidios. Abstract:The polarization is a measure that represents the inequity between groups. These groups are identified in a manner that if there is not identification within the group, polarization and inequality will be the same. This work shows the conditions that must satisfy a proportional tax policy to maintain the degree of polarization. The literature shows that inequality remains unchanged; however, to maintain the polarization unchanged, the tax policies are special and are more stringent when the degree of group identification is increasing. In particular, emerge negative policies, such as subsidies.

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The Mathematical Relation Between the Income Density Function and the Measurement of Income Inequality

Cited by 12 publications

References 0 publications

On the Positive Correlation between Income Inequality and Unemployment

On the Positive Correlation between Income Inequality and Unemployment

On the Positive Correlation between Income Inequality and Unemployment

Condiciones de la política de impuestos para mantener la polarización y la desigualdad

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