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  5. The Indexability of Ordinal Measures of Inequality

The Indexability of Ordinal Measures of Inequality

File(s)
Fields96_The_indexability_of_ordinal_measures.pdf (1.32 MB)
Permanent Link(s)
https://hdl.handle.net/1813/74745
Collections
Faculty Publications - International and Comparative Labor
ILR Working Papers
Author
Fei, John C. H.
Fields, Gary S.
Abstract

[Excerpt] The comparison of alternative patterns of family income distribution, as in most social welfare judgments, is a difficult and sometimes controversial subject. An ideal method for the design of an ordinal measurement of inequality is an axiomatic approach whereby reasonable properties are explicitly postulated for a complete pre-ordering R defined on the income distribution space Ω+, the non-negative orthant of the n-dimensional real space Sn. Commonly used axioms are those of scale irrelevance (A1), symmetry (or anonymity) (A2), and the desirability of rank-preserving equalization (A3). While A1 isolates the 'distribution' of income from the overall 'level,' A2 emphasizes a 'democratic' principle in which all families are treated alike. The third axiom A3 states that equality increases when income is transferred from a relatively rich to a relatively poor family. This set of axioms, to be discussed briefly below, will be taken as the starting point of the present paper.

Date Issued
1974-05-01
Keywords
family income distribution
•
inequality
Rights
Required Publisher Statement: Copyright held by the authors. Reprinted with permission. All rights reserved.
Type
article

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