Modeling the Joint Distribution of Income and Wealth.

Markus Jantti, Eva Sierminska, Philippe Van Kerm

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

This paper considers a parametric model for the joint distribution of income and wealth. The model is used to analyze income and wealth inequality in five OECD countries using comparable household-level survey data. We focus on the dependence parameter between the two variables and study whether accounting for wealth and income jointly reveals a different pattern of social inequality than the traditional ?income only? approach. We find that cross-country variations in the dependence parameter effectively account only for a small fraction of cross-country differences in a bivariate measure of inequality. The index appears primarily driven by differences in inequality in the wealth distribution.
Original languageEnglish
Title of host publicationResearch on Economic Inequality
Subtitle of host publicationMeasurement of Poverty, Deprivation, and Economic Mobility
PublisherEmerald Publishing Limited
Pages301-327
Number of pages0
Volume23
DOIs
Publication statusPublished - 2015

Keywords

  • Copula
  • Income
  • Inequality
  • Multivariate Gini
  • Wealth

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