Visualizing the evolution of income inequality

Authors

Abstract

The reporting of only relative inequalities is decreasing and other inequality invariance criteria are often being considered simultaneously. Having multiple measures with potentially different conclusions on whether inequality has increased or decreased complicates communicating what these results imply about the evolution of income inequality. To facilitate understanding this evolution, we highlight the advantage of visualizing in a single graph the relationship between changes in mean income and the development of inequality according to multiple inequality invariance criteria. Not presenting how these entities relate may mislead policy makers about the evolution of income inequality and its potential causes.

Author Biographies

Gustav Kjelsson, Department of Economics, University of Gothenburg

Associate Senior Lecturer

Dennis Petrie, Monash University

Centre for Health Economics, Monash Business School, Associate Professor

Published

2021-07-09

How to Cite

Kjelsson, G., & Petrie, D. (2021). Visualizing the evolution of income inequality. Journal of Income Distribution®, 29(1-2 (March-June). Retrieved from https://jid.journals.yorku.ca/index.php/jid/article/view/40391