Inequality comparisons when the populations differ in size

Ronny Aboudi, Dominique Thon, Stein W. Wallace

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

This paper considers the problem of comparing two income distributions with different numbers of income recipients. The approach eschews the "replication of populations" of Dalton's Population Principle which has been a fixture of the literature on income inequality since its inception. We start from a preorder which is a generalization of majorization, construct the "better-than" set and characterize the order-preserving welfare functions in a unified framework. The fixed population case falls off as a particular case.

Original languageEnglish (US)
Pages (from-to)47-70
Number of pages24
JournalJournal of Economic Inequality
Volume8
Issue number1
DOIs
StatePublished - Mar 2010

Keywords

  • Income inequality
  • Lorenz dominance
  • Majorization
  • Population axiom

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics, Econometrics and Finance(all)
  • Organizational Behavior and Human Resource Management

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