Title: On the progress to reduce economic inequality: Insights from recently proposed measures of inequality
Authors: Joseph Gastwirth - George Washington University (United States) [presenting]
Abstract: Most measures of income inequality compare a measure of the variation in income to the average. When most of the increase in income goes to the upper part of the curve, this leads to an under-estimate of the true change. One new measure, G2, replaces the mean by the median in the Gini index and shows that income inequality in the U.S., U.K and other nations increased faster than the Gini index. Two transformations of the Lorenz curve asks what fraction of income cumulated from the bottom or middle is needed to have the same share of income as the top 100q\%. These curves and related area measures also indicate a greater rate of increase in inequality. Recent extensions of these curves can be used to examine the progress of minorities and women. They show that in the U.S., since 2000, African-Americans have made very little progress relative to whites. While the income of women has increased somewhat relative to males, most of these relative gains were received by women in the upper portion of the female distribution.