A simple method for measuring inequality
To simultaneously overcome the limitation of the Gini index in that it is less sensitive to inequality at the tails of income distribution and the limitation of the inter-decile ratios that ignore inequality in the middle of income distribution, an inequality index is introduced. It comprises three indicators, namely, the Gini index, the income share held by the top 10%, and the income share held by the bottom 10%. The data from the World Bank database and the Organization for Economic Co-operation and Development Income Distribution Database between 2005 and 2015 are used to demonstrate how the inequality index works. The results show that it can distinguish income inequality among countries that share the same Gini index but have different income gaps between the top 10% and the bottom 10%. It could also distinguish income inequality among countries that have the same ratio of income share held by the top 10% to income share held by the bottom 10% but differ in the values of the Gini index. In addition, the inequality index could capture the dynamics where the Gini index of a country is stable over time but the ratio of income share of the top 10% to income share of the bottom 10% is increasing. Furthermore, the inequality index could be applied to other scientific disciplines as a measure of statistical heterogeneity and for size distributions of any non-negative quantities.
- Research Article
6
- 10.21686/2500-3925-2022-2-36-42
- Apr 12, 2022
- Statistics and Economics
Purpose of the study. Identification of global trends in inequality in the distribution of the population income. In accordance with the goal, the following tasks are set: 1) to examine current international research that addresses the problem of income distribution inequality of the population; 2) assess the differentiation of the population income at the global and regional levels; 3) on the basis of the Gini and Theil indexes, to analyze the dynamics of income inequality of the population within and between countries of the world.Materials and methods. In the process of preparing the article, theauthor used data from international reports, analytical statistical materials, scientific works of Russian and foreign scientists. The scientific methods of cognition were used in the work: analysis (to assess changes in indicators of income inequality of the population), synthesis (to determine the relationship between inter-country and intra-country income inequalities of the population), graphical (to build graphs that reflect the dynamics of changes in the distribution of national income and assets among the population, Gini coefficient, Theil index). These methods made it possible to identify the scale and trends in the differentiation of the population income in the world.Results. The problem of uneven distribution of the population income was investigated. It has been established that inequality in the population income differs significantly between regions of the world, and the level of inequality of the population in terms of income within countries is much higher than the level of inequality between countries. An assessment of the current state is given and trends in the differentiation of the population income in the world based on the Gini index and the Theil index are revealed.Conclusion. It has been established that the problem of income differentiation of the population is in the focus of attention of both the scientific community and international organizations, namely: the United Nations, the Organization for Economic Cooperation and Development, the World Bank, Oxfam. The level of differentiation of the population by income between regions of the world differs significantly. The scale of global income inequality of the population now has reached the level that was observed during the heyday of Western imperialism. With the help of the Gini and Theil indexes, it was revealed that intra-country inequality is significantly greater than the inter-country income inequality of the population.
- Research Article
13
- 10.2903/sp.efsa.2015.en-924
- Dec 1, 2015
- EFSA Supporting Publications
Outcome of the pesticides peer review meeting on general recurring issues in ecotoxicology
- Research Article
1
- 10.31107/2075-1990-2023-3-59-77
- Jan 1, 2023
- Financial Journal
The purpose of this study is to determine the impact of the structure and level of the tax burden on inequality of citizens, using the example of the countries of the Organization for Economic Cooperation and Development (OECD). The hypothesis was that the structure and level of the tax burden affect citizens inequality. This hypothesis was tested using a correlation and regression analysis of the dependence of citizens inequality level on the tax burden structure by decomposing it into separate taxes. The Gini coefficient and the share of income of the tenth decile group were chosen as indicators of inequality. The calculations were carried out using the Data Analysis in MS Excel for the years 2000 and 2020 on the basis of statistical data from the World Bank and OECD. The data set formed for the study contains about 1 thousand indicators. The share of all taxes in GDP has the closest relationship with inequality: it explains the dynamics of the level of inequality by 53–74%. The severity of the tax burden has a more significant impact on inequality than its structure. The decrease or increase in the share of a tax in the structure of the tax burden characterizes the weakening or strengthening of the impact of this tax on inequality. The change in the structure of the tax burden in OECD countries in 2020 compared to 2000 contributed to the smoothing of citizens inequality by increasing the share of income tax while reducing the share of indirect taxes. The relationship between the indicators of tax burden and inequality is non-linear. It fits into the concept of A. Laffer. Establishing the type of this dependence will make it possible to solve the problem of optimizing the structure of tax burden in order to smooth inequality.
- Research Article
5
- 10.1016/j.ambp.2007.05.001
- Jul 1, 2007
- Ambulatory Pediatrics
The UNICEF Report on Child Well-Being
- Research Article
- 10.1002/wow3.162
- Feb 1, 2020
- World Employment and Social Outlook
Bibliography
- Research Article
50
- 10.35808/ersj/347
- Nov 1, 2012
- EUROPEAN RESEARCH STUDIES JOURNAL
1. Introduction There is extended research analyzing relationship between income inequality and selected macroeconomic variables such as growth rate, inflation rate, openness etc. Azzoni (2001) has analyzed regional inequality in Brazil using data from period 1939-1995. Barro (2000) has used a panel data approach to investigate 100 countries for period 1960-1990. Bandelj and Mahutga (2010) have presented one of cross-national analyses of Central and Eastern European States after fall of communistic regimes. While Azzoni (2001) and Barro (2000) have focused on linkage of inequality and growth, Bandelj and Mahutga (2010) have assessed inequality and socio-economic changes. Beckfield (2009) has developed an argument that regional integration in Europe has affected economic inequality. Also Forbes (2000) has investigated relationship between inequality and growth. In this research data from 13 EU4 countries have been used from period 2000-2009 in an attempt to investigate relationship between income inequality and inflation. The paper is organized as follows: Section 2 gives a brief introduction to income inequality and inflation and outlines some related theoretical and empirical literature. Section 3 presents methodology and results while section 4 concludes research. 2. Inequality and Inflation The GINI coefficient is a widely used statistic for measuring inequality. It is derived from Lorenz curve and defined as ratio of area between Lorenz curve and perfect equality line. The Lorenz curve plots relation between cumulative percentage of population and proportion of total income earned by each cumulative percentage. The dependent variable is GINI coefficient; a common measure of inequality that varies from 0 to 1, where 0 presents perfect equality and 1 perfect inequality. As it is stated in Duro (2004) the GINI coefficient is more sensitive to income changes occurred at middle of income distribution, treating symmetrically lower and upper tails of incomes ranking. Due to fact that income distribution may have long run effects policy makers should be concerned with distributional implications of government policies. Also extent of inequality-inflation link is important in designing of stabilization programs as it is stated in Al-Mahrubi (2000). When unemployment rates increase it usually affect more people in lower tail of personal income distribution, thus lowering average per capita income (Levernier, et al., 1995). Checchi and Garcia-Penalosa (2008) argue that when unemployment rate is not too high unemployment and inequality linkage is positive. Beetsma and Van Der Ploeg (1996), Al-Mahrubi (1997), Romer and Romer (1998) and Albanesi (2001, 2007) have found a strong positive relation between inflation and inequality. Cardoso (1992) has concluded that inflation shifts wage profile. Bulif (1998) has used a cross-sectional approach regressing GINI coefficients and has found that higher inflation is associated with more inequality (Crowe, 2004). Milanovic (1994) argues about factors which determine income distribution. Factors are in short run, from point of view of policy makers or society as a whole given and by social (or public policy) choice. Milanovic (1994) tests hypothesis according to which government policies can significantly change income distribution and Kuznet holds. Al-Marhubi (1997) investigates inflation-inequality link by using positive political-economy approach and finds that countries which have a greater inequality have a higher average rate of inflation. The dependent variable which is used in Al-Mahrubi model is average annual inflation rate in log form and independents are GINI coefficient, openness, political instability, turnover of Central Bank Governors and legal Central Bank independence. …
- Research Article
10
- 10.1016/j.jpolmod.2020.10.003
- Nov 17, 2020
- Journal of Policy Modeling
Beyond Piketty: A new perspective on poverty and inequality in India
- Research Article
7
- 10.3390/su11205803
- Oct 18, 2019
- Sustainability
In countries that have developed under the current market economy, inequalities in income distribution tend to increase with three different trends, i.e., high (United States, United Kingdom, Japan), low (North Europe countries), and medium Gini coefficient levels. On the other hand, the relationship between income distribution and social welfare is generally a difficult problem to solve in economics. So, this paper discusses the impact of income distribution on the macroeconomy, limiting the scope to consistency with long-term economic growth. We attempt to answer these economic policy issues by simulation using an agent-based model based on replicator dynamics. As a result of the simulation in this paper, in general, in countries with the high marginal propensity to consume, long-term growth can be maintained by inducing equality in income distribution. On the other hand, a mature country with a low marginal propensity to consume can sustain not so high but stable growth despite increasing inequality in income distribution. According to simulation results based on OECD (Organisation for Economic Co-operation and Development) data, in the former UK, US, and Japan, the lower the Gini coefficient is, the higher the growth potential is, while in the latter Norway and Luxembourg, relatively stable growth is maintained even if the Gini coefficient increases.
- Research Article
4
- 10.5152/hsp.2019.569474
- Nov 11, 2019
- Archives of Health Science and Research
Objective: The relationship between health level (status) and economic level is an important research area in health economics literature, and countries with above-average health status indicators that have healthy economic indicators as well are generally accepted. The aims of the present study were to determine the position of countries based on their health status and economic indicators, to rank the performance of countries with respect to both groups of indicators, to observe the changes in and the relationship between health and economic performance ranking, and to examine the relationship between health and macroeconomic performance scores using correlation analysis. Materials and methods: Multidimensional scaling was used to determine the countries’ position, and the Technique for Order of Preference by Similarity to Ideal Solution method was used to rank the country’s net performance according to health status and economic indicators. The study uses horizontal data for 2016. Economic data were obtained from the International Monetary Fund, and each of the country’s health status indicators was obtained from the World Health Organization and Organisation for Economic Co-operation and Development (OECD) Health Data Bank. Results: Macroeconomic performance ranking results showed that while Ireland performed best, Turkey performed worst among OECD countries. Health status performance ranking results ranked Japan as first and Turkey as last. Additionally, a positive, moderately significant correlation between macroeconomic and health status indicators was obtained. Conclusion: Currently, especially with aging populations, various problems have arisen in the health status of societies, affecting the general level of health in the society and economic structure. Therefore, health services for the elderly can play a role in improving health status and economic level. Cite this article as: Özsarı H, Boz C. Comparison of Health Status and Macroeconomic Indicators in Organization for Economic Cooperation and Development Countries Using Multidimensional Scaling and TOPSIS. Journal of Health Science and Profession 2019; 6(3): 545-54.
- Research Article
5
- 10.2903/sp.efsa.2018.en-1366
- Jan 1, 2018
- EFSA Supporting Publications
EFSA Supporting PublicationsVolume 15, Issue 1 1366E Technical reportOpen Access Explanatory note on the selection of forage material suitable for the risk assessment of GM feed of plant origin European Food Safety Authority (EFSA), European Food Safety Authority (EFSA)Search for more papers by this authorMichele Ardizzone, Michele ArdizzoneSearch for more papers by this authorClaudia Paoletti, Claudia PaolettiSearch for more papers by this authorElisabeth Waigmann, Elisabeth WaigmannSearch for more papers by this author European Food Safety Authority (EFSA), European Food Safety Authority (EFSA)Search for more papers by this authorMichele Ardizzone, Michele ArdizzoneSearch for more papers by this authorClaudia Paoletti, Claudia PaolettiSearch for more papers by this authorElisabeth Waigmann, Elisabeth WaigmannSearch for more papers by this author First published: 29 January 2018 https://doi.org/10.2903/sp.efsa.2018.EN-1366Citations: 6 Requestor: EFSA Question number: EFSA-Q-2017-00614 AboutPDF ToolsExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL References Allen VG, Batello C, Berretta EJ, Hodgson J, Kothmann M, Li X, McIvor J, Milne J,. Morris C,. Peeters A and Sanderson M, 2011. An international terminology for grazing lands and grazing animals. Grass and Forage Science, 66, 2– 28. EFSA GMO Panel (EFSA Panel on Genetically Modified Organisms), 2011. EFSA Panel on Genetically Modified Organisms (GMO); Scientific Opinion on Guidance for risk assessment of food and feed from genetically modified plants. EFSA Journal 2011; 9(5):2150, 37 pp. https://doi.org/10.2903/j.efsa.2011.2150 U Meier (ed.), 2001. Growth stages of mono-and dicotyledonous plants, 2nd edition. BBCH Monograph. Federal Biological Research Centre for Agriculture and Forestry, Bonn, Germany. McDonald P, Edwards RA, Greenhalgh JFD, Morgan CA, Sinclair LA, Wilkinson RG, 7th ed., 2011. Animal Nutrition,. Pearson education limited. OECD (Organisation for Economic Co-operation and Development), 2002a. Consensus document on compositional considerations for new varieties of sugar beet: key food and feed nutrients and anti-nutrients. Series on the Safety of Novel Foods and Feeds, No. 3. ENV/JM/MONO(2002)4 OECD (Organisation for Economic Co-operation and Development), 2002b. Consensus document on compositional considerations for new varieties of maize (Zea maize): key food and feed nutrients, anti-nutrients and secondary plant metabolites. Series on the Safety of Novel Foods and Feeds, No 11. ENV/JM/MONO(2004)16. OECD (Organisation for Economic Co-operation and Development), 2009. Consensus document on compositional considerations for new varieties of cotton (Gossypium hirsutum and Gossypium barbadense): key food and feed nutrients and anti-nutrients. Series on the Safety of Novel Foods and Feeds, No 11. ENV/JM/MONO(2004)16. OECD (Organisation for Economic Co-operation and Development), 2011. Revised consensus document on compositional considerations for new varieties of low erucic acid rapeseed (Canola): key food and feed nutrients, anti-nutrients and toxicants. Series on the Safety of Novel Foods and Feeds, No. 24. ENV/JM/MONO (2011)55. OECD (Organisation for Economic Co-operation and Development), 2012. Revised consensus document on compositional considerations for new varieties of soybean [Glycine max (L.) merr.]: Key food and feed nutrients, anti-nutrients, toxicants and allergens. Series on the Safety of Novel Foods and Feeds, No. 25. ENV/JM/MONO(2012)24 OECD (Organisation for Economic Co-operation and Development), 2015. Safety assessment of foods and feeds derived from transgenic crops, Volume 1, novel food and feed safety, OECD publishing, Paris. Citing Literature Volume15, Issue1January 20181366E ReferencesRelatedInformation
- Research Article
528
- 10.1086/450006
- Jan 1, 1963
- Economic Development and Cultural Change
Quantitative Aspects of the Economic Growth of Nations: VIII. Distribution of Income by Size
- Research Article
- 10.1093/eurpub/ckz187.198
- Nov 1, 2019
- European Journal of Public Health
Backgrounds The suicide mortality rate in Korea has been the highest in the Organization for Economic Co-operation and Development countries between 2003 and 2016. The trends of suicide mortality and its inequalities according to socioeconomic positions provide important information in establishing suicide prevention policies. This study investigated trends in suicide mortality and its income-based inequalities in Korea between 2005 and 2017. Methods Data from 2005-2017 National Health Insurance Database individually linked with cause-of-death data of Statistics Korea were employed. A total of 164,412 suicidal deaths from 574,610,162 subjects aged 10 or over were analyzed. Age-standardized suicide mortality rates were calculated by the calendar year, sex, and income quintiles. The slope index of inequality was calculated as an absolute measure for inequality and relative index of inequality was used as a relative inequality measure. Results The suicide mortality in Korea increased from 29.3 per 100,000 in 2005 to 33.3 in 2011, then decreased to 23.1 in 2017. Suicide mortality rates in men were more than twice as high as the rates in women and the gender gap remained throughout the period. The lower income-level, the higher the suicide mortality rate, especially in men. The absolute inequality in suicide measured by the slope index of inequality has changed as the suicide mortality rate fluctuated, but the relative inequality in suicide has increased since 2012. Conclusions The suicide mortality in Korea has increased due to the global financial crisis and copycat suicide following celebrity suicides in 2008, but it has decreased since the paraquat ban in 2011-12. Despite the recent decline in suicide mortality, the gap between income quintiles did not change meaningfully during the study period. In particular, the magnitude of relative inequality has increased. Progressive national policies should be implemented to reduce suicide mortality and its income gaps. Key messages Despite the recent decline in suicide mortality in Korea, the income-based inequalities in suicide did not change meaningfully. The magnitude of relative inequalities has increased recently.
- Research Article
1
- 10.5277/ord130104
- Jan 1, 2013
The most common measure of inequality used in scientific research is the Gini index. In 2007 Zenga proposed a new index of inequality that has all the appropriate properties of an measure of equality. In this paper we want to compare the Gini and Zenga indexes, calculating these quantities for a few distributions frequently used for approximating distributions of income, that is, the lognormal, gamma, inverse Gauss, Weibull and Burr distributions. Within this limited examination of these indexes, we have observed three main differences. First, the Zenga index increases more rapidly for low values of the variation and decreases more slowly when the variation approaches intermediate values from above. Second, the Zenga index seems to be better predicted by the variation. Third, although the Zenga index is always greater than the Gini index, the ordering of some pairs of cases may be inverted.
- Research Article
34
- 10.1017/s0020818300013540
- Jan 1, 1968
- International Organization
The problems of development assistance have loomed large on the OECD agenda ever since its establishment, first as the Organization for European Economic Cooperation (OEEC) and then as the Organization for Economic Cooperation and Development (OECD). Briefly recapitulated, OEEC was created in 1948 to provide for the joint European execution of the Marshall Plan and for the close economic cooperation that the United States' aid offer had launched. Whatever the actual contribution of OEEC, the postwar European economic recovery was remarkably quick. Few international organizations have been thus blessed with the satisfaction of seeing their objectives so amply fulfilled.
- Book Chapter
- 10.1007/978-94-011-3576-4_6
- Jan 1, 1992
As the Organization for Economic Cooperation and Development (OECD) is the successor to the Organization for European Economic Cooperation (OEEC), we should study the latter as a preliminary to any discussion of the former.
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