[en] This paper considers a parametric model for the joint distribution of income and wealth. The model is used to analyze income and wealth inequality in five OECD countries using comparable household-level survey data. We focus on the dependence parameter between the two variables and study whether accounting for wealth and income jointly reveals a different pattern of social inequality than the traditional “income only” approach. We find that cross-country variations in the dependence parameter effectively account only for a small fraction of cross-country differences in a bivariate measure of inequality. The index appears primarily driven by differences in inequality in the wealth distribution.
Disciplines :
Social economics Quantitative methods in economics & management Sociology & social sciences
Author, co-author :
Jäntti, Markus; Stockholm University
Sierminska, Eva M.; Luxembourg Institute of Socio-Economic Research - LISER
Van Kerm, Philippe ; Luxembourg Institute of Socio-Economic Research - LISER
External co-authors :
yes
Language :
English
Title :
Modeling the Joint Distribution of Income and Wealth
Publication date :
2015
Main work title :
Measurement of Poverty, Deprivation, and Economic Mobility