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Research on Economic Inequality Volume 12 is the outgrowth of University of Alabama Poverty and Inequality Conference, May 22–25, 2003. The motivation for the conference was to honor John P. Formby upon his retirement. The conference, funded by the University, was designed to bring together three groups of people; first, some of the most recognized scholars in the field, second, current and former colleagues of John Formby’s working in this field, and third, Dr. Formby’s former Ph.D. and post-doctoral students. Seventeen papers were presented, 11 of which are authored or co-authored by Dr. Formby’s former students. Peter Lambert and Yoram Amiel also participated in the conference. Dan Slottje, John Creedy, Shlomo Yitzhaki and Quentin Wodon did not attend but contributed papers.

Dominance techniques are used to analyze and rank inequality, welfare, and poverty across regions in Thailand in the 1990s. Inference-based dominance methods are applied to consumption expenditure microdata from the Household Socio-Economic Surveys (SES) of 1992, 1994, 1996, 1998 and 2000. Attention is focused on the period immediately before and after the economic contraction of 1996–1997. Lorenz dominance is employed to assess inequality, while first-order Engel food share dominance is applied to rank welfare across time and among regions. Poverty is evaluated by comparing truncated food-share quantile functions. The evidence reveals that the economic crisis in 1997 seems to affect inequality in Bangkok (the richest region) more than the Northeast (the poorest region), and most dramatic changes occur in the North and South. Welfare in Bangkok is unambiguously higher than in other regions before and after economic contraction. In fact, the great economic contraction changes the rankings of economic well-being and poverty only in the North, South, and Northeast.

The purpose of Volume 10 is to collect together original research papers on fiscal policy (taxes and transfers) and inequality. The first two chapters of Volume 10 address methodological issues in tax progressivity measurement. John Creedy examines the questions of to what extent can redistribution be achieved using a structure of consumption taxes with different rates and exemptions. The paper shows that progressivity is maximized when only one commodity group is taxed, the commodity group with the largest total expenditure elasticity. Generalizing this result, Creedy shows that the tax rate should fall as the total elasticity falls. Creedy illustrates his approach using data on Australia’s indirect tax system. In Chapter 2 Lea Achdut, Yasser Awad, and Jacques Silber propose an alternative way to define tax progressivity as a function of marginal, not average tax rates. Changes in tax progressivity indices are usually defined in terms of changes in average tax rates, while changes in tax policy are usually stated in terms of changes in marginal tax rates. Thus, this paper fills a gap between theory and applied work. They apply their approach to study the progressivity of Israel’s National Insurance tax system.

In this paper we apply the Gini adjustment procedure developed by Bishop, Formby, and Smith (1997) to investigate the effects of demographic factors on earnings inequality in Taiwan. We advance their method using quantile regression to control for demographic factors between 1978 and 1999 based on the subsample of workers conducted by the DGBAS. It is found that the marginal impact effects of female on earnings inequality are larger than the effects of years of schooling and experience. Hence, gender gap has the most significant impact on earnings inequality in Taiwan. Finally, the policy implications from our study are that controlling for gender gap could reduce earnings inequality. In particular, adoption of an affirmative action policy for women may successfully reduce the overall level of earnings inequality in Taiwan.

We use recently developed methods to perform decompositions of the Lorenz curve in the United States by race, region, and marital status. The decomposed Lorenz ordinates are used to construct interdistributional Lorenz curves (ILCs), which allow us to identify an economic advantage by one subgroup over another or changes in economic advantage over time. We propose asymptotically distribution-free estimators for the ILCs and apply these estimators to data from the Current Population Survey for 1977 and 1997. As one might expect, there are economic advantages by race, region, and marital status, even in 1997. Economic advantage is greatest for marital status and smallest for region in both years. We find significant convergence (i.e. a smaller economic advantage) over time by race and region, though not by marital status.

Labor markets for unskilled and low-wage workers in the United States stagnated in the last quarter of the 20th century. The collapse in the low-wage labor market has been well documented¹ and numerous research initiatives have investigated the causes. Despite some geographical mismatches between buyers and sellers low-paying jobs are generally available but forces are at work on both the demand and supply sides of unskilled labor markets that make it increasingly difficult for working families at or near the bottom of the income distribution to earn enough to meet basic needs. Welfare reform effectively increased the supply of unskilled workers, which placed added pressures on wages and earnings of low-income families.

By “political economy” I mean both the method of thought and the body of knowledge which refer to human economising behaviour. The body of knowledge includes both theory — theorems, laws, empirical generalisations, etc., and “facts” — history, description of institution, statistical data, etc. By “Christian theology” I mean both the method of thought and the body of knowledge which refer to the human religious understanding of Jesus of Nazareth. “Religious” here implies awareness of, or belief in, God. The body of knowledge may include pre‐Christian religion (such as that reported in the Old Testament), and the results of independent inquiry (such as natural theology) in so far as these are interpreted by, or “refracted” through what theologians call the “Christ event”.

Volume 18 of Research on Economic Inequality contains selected papers from the Society for the Study of Economic Inequality's Third Annual Meeting (July, 2009) in Buenos Aires, Argentina. The volume collects eleven papers, five of which focus on inequality and poverty in Latin America. The Latin American papers address basic needs and poverty, multidimensional poverty, educational mobility, poverty dynamics, and the role of cash transfer programs in addressing inequality. The second half of Volume 18 collects other papers by ECINEQ members. The topics covered include taxation and inequality, evaluating poverty orderings, testing for mobility dominance, measuring relative deprivation, estimation of the costs of maintaining a child, and evaluating nutritional inequality.