Partial Multidimensional Inequality Orderings

Posted: 28 Feb 2011

See all articles by Jean-Yves Duclos

Jean-Yves Duclos

Laval University; IZA Institute of Labor Economics

David E. Sahn

Cornell University

Stephen D. Younger

Tulane University - CEQ Institute

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2011

Abstract

The paper investigates how comparisons of multivariate inequality can be made robust to varying the intensity of focus on the share of the population that are more relatively deprived. It is in the spirit of Sen (1970)’s partial orderings and follows the dominance approach to making inequality comparisons. By focusing on those below a multidimensional inequality “frontier”, we are able to reconcile the literature on multivariate relative poverty and multivariate inequality. Some existing approaches to multivariate inequality actually reduce the distributional analysis to a univariate problem, either by using a utility function first to aggregate an individual's multiple dimensions of well-being, or by applying a univariate inequality analysis to each dimension independently. One of our innovations is that unlike previous approaches, the distribution of relative well-being in one dimension is allowed to affect how other dimensions influence overall inequality. Our methods are also robust to choices of individual “utility” or aggregation functions. We apply our approach to data from India and Mexico to show inter alia how dependence between dimensions of well-being can influence relative poverty and inequality comparisons between two populations.

Keywords: Inequality, Multidimensional Comparisons, Stochastic Dominance

JEL Classification: D3, I3

Suggested Citation

Duclos, Jean-Yves and Sahn, David E. and Younger, Stephen D., Partial Multidimensional Inequality Orderings (April 1, 2011). Journal of Public Economics, Vol. 95, No. 3-4, pp. 225-238, April 2011, Available at SSRN: https://ssrn.com/abstract=1773088

Jean-Yves Duclos (Contact Author)

Laval University ( email )

Quebec G1K 7P4
Canada
418-656-7096 (Phone)
418-656-9727 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

David E. Sahn

Cornell University ( email )

B16 MVR Hall
Ithaca, NY 14853
United States
607-255-8931 (Phone)
607-255-0178 (Fax)

HOME PAGE: http://courses.cit.cornell.edu/des16

Stephen D. Younger

Tulane University - CEQ Institute ( email )

6823 St Charles Ave
New Orleans, LA 70118
United States

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