We show how classic source-decomposition and subgroup-decomposition methods can be reconciled with regression methodology used in the recent literature. We also highlight some pitfalls that arise from uncritical use of the regression approach. The LIS database is used to compare the approaches...

Temkin (1986,1993) sets out a philosophical basis for the analysis of income inequality that provides an important alternative to the mainstream welfarist approach. We show that the Temkin principles can be characterised by a parsimonious axiomatic structure and we use this structure to derive a...

We examine individuals’ distributional orderings in a number of contexts. This is done by using a questionnaire-experiment that is presented to respondents in any one of seven “flavors” or interpretations of the basic distributional problem. The flavors include inequality, risk, social...

Using a simple axiomatic structure we characterise two classes of inequality indices - absolute and relative - that take into account “envy” in the income distribution. The concept of envy incorporated here concerns the distance of each person’s income from his or her immediately richer...

Recent insights from the philosopher Larry Temkin have suggested a new basis for the measurement of income inequality, founded on the notion of individual “complaints” about income distribution. Under certain specifications of the relationship between complaints and personal incomes it can...

This article provides a brief overview of the key issues in inequality measurement and has been prepared for inclusion in the second edition of The New Palgrave.