Relative income change and pro-poor growth

Marek Kośny , Gaston Yalonetzky

Abstract

Most methods for the analysis of distributional change rely on the changes in the income of a particular group of people, taking either the situation of this group in the previous period, or the average change in the population, as reference point. By contrast, we propose a measure of distributional change based on the comparison of a group's wellbeing standard against a richer group, thereby capturing a notion of change in relative income, which embodies the influence of others' wellbeing on the judgment of the group's own situation. The indices, and related relative income change (RIC) curves, are based on ratios of generalized mean incomes between two groups, which render them closely related to Zenga's inequality measures and Lorenz curve comparisons, when arithmetic means are used. We consider both relative and absolute income cut-offs for the group partitions. Differences and similarities between our measures of RIC and the Growth Incidence Curve are also discussed. These are highlighted in an empirical illustration on European countries.
Author Marek Kośny (MISaF / IZM / KBO)
Marek Kośny,,
- Katedra Badań Operacyjnych
, Gaston Yalonetzky
Gaston Yalonetzky,,
-
Journal seriesEconomia Politica, ISSN 1120-2890, (A 15 pkt)
Issue year2015
Vol32
No3
Pages311-327
Keywords in EnglishRelative income, Income distribution, Pro-poor growth
ASJC Classification2002 Economics and Econometrics; 3312 Sociology and Political Science; 2003 Finance
DOIDOI:10.1007/s40888-015-0017-8
Languageen angielski
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Kosny_Relative_income_change_and_pro.pdf 685,01 KB
Score (nominal)15
Publication indicators WoS Citations = 3; Scopus SNIP (Source Normalised Impact per Paper): 2015 = 0.304; WoS Impact Factor: 2015 = 0.051 (2) - 2015=0.29 (5)
Citation count*3 (2019-12-07)
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