The 'prediction approach' proposed by Dearden, Machin and Reed (DMR) consists in (1) regressing the observed incomes of the child and parent families on separate sets of predetermined variables, and (2) regressing the child's predicted income on that of the parents. Conceptually, this estimator...

In this paper we examine the concept of "vulnerability" within the context of incomemobility of the poor. We test for the dynamics of vulnerable households in the UKusing Waves 1 - 12 of the British Household Panel Study and find that, of threedifferent types of risks that we test for,...

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...

An important aspect of income distribution is the modelling of the data using an appropriate parametric model. This involves estimating the parameters of the models, given the data at hand. Income data are typically in grouped form. Moreover, they are not always reliable in that they may contain...

Even if individuals care about their current economic status, they are mainly concerned about the time they remain in it (its duration). The expected duration of an economic status affects how individuals perceive it and therefore, it should modify any economic policy aiming for Social Welfare...

The second-order stochastic dominance criterion for inequality analysis introduced by Atkinson (1970) covers nearly all well-known inequality indices. The same cannot be said, in respect of poverty indices, for the second-order stochastic dominance criterion for poverty analysis introduced by...

We examine the implications of three similar criteria that are commonly used in welfare economics and the analysis of inequality and poverty - income dominance, monotonicity and the Pareto principle - within the context of income-distribution comparisons. We show that whilst there is a simple...

This paper investigates possible explanations for the increases in inequality observed in Brazil during the 1980s. While the static decompositions of inequality by household characteristics reveal that education and race of the household head, as well as geographic location, can account for a...

Drawing on recent work concerning the statistical robustness of inequality statistics we examine the sensitivity of poverty indices to data contamination using the concept of the influence function. We show that poverty and inequality indices have fundamentally different robustness properties,...

Non-parametric kernel density estimates are employed for an exploratory analysis of the distributional conseuqnces of the German tax-benefit system using GSOEP. The focuses is on the year 1991 and a detailed analysis is provided. Moreover, the anatomy of income inequality is thoroughly examined,...