Artikel

The BIP Trilogy (bipolarization, inequality and polarization): One saga but three different stories

Inequality, bi-polarization and polarization are related but distinct concepts aiming at analysing the income distribution. This paper first recalls the main differences between these three notions of inequality, bipolarization and polarization and then suggests using the so-called Shapley decomposition to show that the various income sources have a different impact on these three types of indicators. Our empirical investigation, based on 2008 data for Luxembourg, shows in fact that, in the case of the so-called zero income Shapley decomposition, inequality in Luxembourg is strongly related to income from capital while bi-polarization is mainly due to the distribution of income from work and polarization to that of the income from work and transfers.

Language
Englisch

Bibliographic citation
Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 7 ; Year: 2013 ; Issue: 2013-22 ; Pages: 1-33 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification
Wirtschaft
General Welfare; Well-Being
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Personal Income, Wealth, and Their Distributions
Subject
bi-polarization
income sources
inequality
Luxembourg
polarization
Shapley decomposition procedure

Event
Geistige Schöpfung
(who)
Deutsch, Joseph
Fusco, Alessio
Silber, Jacques
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2013

DOI
doi:10.5018/economics-ejournal.ja.2013-22
Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Deutsch, Joseph
  • Fusco, Alessio
  • Silber, Jacques
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2013

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