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IZA
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Inequalities and Their Measurement
by
Almas Heshmati
(July 2004)
published in: A. Heshmati (Ed), Global Trends in Income Inequality, Hauppauge, NY: Nova Science Publishers, 2007, 11-25
Abstract:
This paper is a review of the recent advances in the measurement of inequality. Inequality
can have several dimensions. Economists are mostly concerned with the income and
consumption dimensions of inequality. Several inequality indices including the most widely
used index of inequality namely the Gini coefficient is discussed. Non-income inequality
includes inequality in skills, education, opportunities, happiness, health, wealth, and others.
The direct and indirect effects of inequality in non-income factors on earnings and health are
discussed. Results from review of the literature suggest relationship between inequality in
income and non-income dimensions. This indicates that one should account for the
interrelationship between the different dimensions in the measurement and analyses of
inequalities.
Text: See Discussion Paper No. 1219
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