Today, as in the past, within a country at a given time those with higher incomes are, on average, happier. However, raising the incomes of all does not increase the happiness of all. This is because the material norms on which judgments of well-being are based increase in the same proportion as the actual income of the society. These conclusions are suggested by data on reported happiness, material norms, and income collected in surveys in a number of countries over the past half century.

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Will raising the incomes of all increase the happiness of all

This article presents a new data set on inequality in the distribution of income. The authors explain the criteria they applied in selecting data on Gini coefficients and on individual quintile groups' income shares. Comparison of the new data set with existing compilations reveals that the data assembled here represent an improvement in quality and a significant expansion in coverage, although differences in the definition of the underlying data might still affect intertemporal and international comparability. Based on this new data set, the authors do not find a systematic link between growth and changes in aggregate inequality. They do find a strong positive relationship between growth and reduction of poverty.

A New Data Set Measuring Income Inequality

This article presents a new data set on inequality in the distribution of income. The authors explain the criteria they applied in selecting data on Gini coefficients and on individual quintile groups' income shares. Comparison of the new data set with existing compilations reveals that the data assembled here represent an improvement in quality and a significant expansion in coverage, although differences in the definition of the underlying data might still affect inter temporal and international comparability. Based on this new data set, the authors do not find a systematic link between growth and changes in aggregate inequality. They do find a strong positive relationship between growth and reduction of poverty.

/pdf/a-new-data-set-measuring-income-inequality-547mfhckz4.pdf

The Rotterdam study

We consider 3 questions regarding the effects of economic deprivation on child development. First, how are developmental outcomes in childhood affected by poverty and such poverty correlates as single parenthood, ethnicity, and maternal education? Second, what are the developmental consequences of the duration and timing of family economic deprivation? And, third, what is the comparative influence of economic deprivation at the family and neighborhood level? We investigate these issues with longitudinal data from the Infant Health and Development Program. We find that family income and poverty status are powerful correlates of the cognitive development and behavior of children, even after accounting for other differences--in particular family structure and maternal schooling--between low- and high-income families. While the duration of poverty matters, its timing in early childhood does not. Age-5 IQs are found to be higher in neighborhoods with greater concentrations of affluent neighbors, while the prevalence of low-income neighbors appears to increase the incidence of externalizing behavior problems.

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Economic Deprivation and Early Childhood Development

The Luxembourg Income Study (LIS) database on which this article is based offers researchers exciting new possibilities for international comparisons based on household income microdata. Among the choices the LIS microdata allows a researcher, e.g. income definition, income accounting unit, etc., is the choice of family equivalence scale, a method for estimating economic well-being by adjusting income for measurable differences in need.

The range of potential equivalence scales that can and are being used in the ten LIS countries and elsewhere to adjust incomes for size and related differences in need span a wide spectrum. The purpose of this paper is to review the available equivalence scales and to test the sensitivity of various income inequality and poverty measures to choice of equivalence scale using the LIS database. The results of our analysis indicate that choice of equivalence scale can sometimes systematically affect absolute and relative levels of poverty; and inequality and therefore rankings of countries (or population subgroups within countries). Because of these sensitivities, one must carefully consider summary statements and policy implications derived from cross-national comparisons of poverty and/or inequality.

Equivalence scales, well‐being, inequality, and poverty: sensitivity estimates across ten countries using the luxembourg income study (lis) database

Income distribution in OECD countries: evidence from the Luxembourg Income Study

Previous studies find large crossnational differences in inequality amongst rich Western nations, due in large part to differences in the generosity of welfare state transfers. The United States is the least generous nation and the one having the most aftertax and transfer inequality. But these analyses are limited to the effects of cash and nearcash transfers and direct taxes on incomes, while on average, half of welfare state transfers in rich nations are inkind benefits—health insurance, education, and other services. Counting inkind benefits at government cost and accounting for the indirect taxes used to finance transfers substantially reduces crossnational differences in inequality at the bottom of the income distribution. The findings have implications for how we think about tradeoffs across welfare state domains that all nations face and we illustrate this with reference to the current U.S. debate about health insurance. © 2006 by the Association for Public Policy Analysis and Management

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A Re-Examination of Welfare States and Inequality in Rich Nations: How In-Kind Transfers and Indirect Taxes Change the Story.

https://www.jstor.org/stable/pdfplus/42923779.pdf

Lee Rainwater

Papers

Equivalence scales, well‐being, inequality, and poverty: sensitivity estimates across ten countries using the luxembourg income study (lis) database

Income distribution in OECD countries: evidence from the Luxembourg Income Study

A Re-Examination of Welfare States and Inequality in Rich Nations: How In-Kind Transfers and Indirect Taxes Change the Story.

Poor Kids in a Rich Country: America's Children in Comparative Perspective

The Future of the Family