Rising mean incomes for whom?

Arbeitspapier

Not everybody is benefiting equally from rising mean incomes. We discuss the mean-income population share (MPS), defined as the population share earning less than the mean income, as an indicator of how representative the mean income is for the mass of the population. This measure is both analytically tractable and simple to interpret to inform the public debate. We discuss its properties and estimation using micro-level and grouped income data. Our empirical application finds that MPS has risen in 13 out of 16 high- and middle-income countries in the last decades, indicating that growth has mostly not been inclusive. MPS shows a mixed correlation structure with the Gini coefficient.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: LIS Working Paper Series ; No. 753

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Data Collection and Data Estimation Methodology; Computer Programs: General ; Economic Growth and Aggregate Productivity: General
• Subject: Mean-income population share ; inclusive growth ; parametric Lorenz function

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Krause, Melanie ; Shao, Liang Frank
• Event: Veröffentlichung
• (who): Luxembourg Income Study (LIS)
• (where): Luxembourg
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/203039
• Last update: 10.03.2025, 11:43 AM CET