We introduce an extension of the Esteban and Ray [Econometrica, 62:819-851 1994] measure of polarization that can be applied to density functions. As a by-product we also derive the Wolfson [Am. Econ. Rev., 84:353-358 1994] measure as a special case. This derivation has the virtue of casting both measures in the context of a (statistically) unified framework. We study the polarization of the distribution of household income for five OECD countries (LIS database): US, UK, Canada, Germany and Sweden.
- Income distribution
ASJC Scopus subject areas
- Sociology and Political Science
- Economics, Econometrics and Finance(all)
- Organizational Behavior and Human Resource Management