Relative Deprivation, Reference Groups and the Assessment of Standard of Living
This paper proposes two new indices of relative deprivation, derived from an extension of the concept of the generalized Gini for the measurement of distributional change. Population- and income-weighted relative deprivation indices are then define...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120103133625 http://hdl.handle.net/10986/3216 |
| Summary: | This paper proposes two new indices of
relative deprivation, derived from an extension of the
concept of the generalized Gini for the measurement of
distributional change. Population- and income-weighted
relative deprivation indices are then defined and, using
panel data from the Consortium of Household Panels for
European Socio-Economic Research, this paper checks which of
the various ways of defining individual deprivation best
fits the answers given by individuals on the degree of their
satisfaction with income. The analysis finds that the
deprivation indices proposed are consistently and negatively
correlated with income satisfaction as reported by
respondents, that income weighted measures fit better than
population weighted measures, and that this fit improves
with countries that experienced deep institutional changes
such as the transitional economies of Eastern Europe. |
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