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Maximum Inequality: The Case of Categorical Data

Research on Economic Inequality: Poverty, Inequality and Shocks

ISBN: 978-1-80071-558-5, eISBN: 978-1-80071-557-8

Publication date: 2 December 2021

Abstract

In the case of ordered categorical data, the concepts of minimum and maximum inequality are not straightforward. In this chapter, the authors consider the Cowell and Flachaire (2017) indices of inequality. The authors show that the minimum and maximum inequality depend on preliminary choices made before using these indices, on status and the sensitivity parameter. Specifically, maximum inequality can be given by the distribution which is the most concentrated in the top or bottom category, or by the uniform distribution.

Keywords

Acknowledgements

Acknowledgments

We would like to thank Stephen Jenkins, whose pertinent questions led to this chapter.

Citation

Cowell, F.A. and Flachaire, E. (2021), "Maximum Inequality: The Case of Categorical Data", Bandyopadhyay, S. (Ed.) Research on Economic Inequality: Poverty, Inequality and Shocks (Research on Economic Inequality, Vol. 29), Emerald Publishing Limited, Leeds, pp. 95-103. https://doi.org/10.1108/S1049-258520210000029006

Publisher

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Emerald Publishing Limited