Subjective Income Inequalities

Bernard Van Praag

in Happiness Quantified

Published in print April 2004 | ISBN: 9780198286547
Published online January 2005 | e-ISBN: 9780191718601 | DOI:
 Subjective Income Inequalities

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This chapter presents a concept of subjective income inequality based on an extension of the objective income concept. Income satisfaction inequality differs from established measures of inequality using individual perceptions as the basis for making incomes comparable. Traditional measures of inequality introduce subjectivism via intuition by for instance, imposing family equivalence scales or by introspection in choosing concrete welfare function specification. The introduction of income satisfaction does not imply that the objective measurement should be replaced by subjective concepts, but only that each measure has a different role to play.

Keywords: income satisfaction; income inequality; individual-welfare function; subjectivism; objective income

Chapter.  9181 words. 

Subjects: Microeconomics

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