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Résumé
Imagine that you are a policymaker and that one of your goals is to achieve a fair society. Given the complexity of what fairness might mean, one possible approach as a first step may be to use a measure of inequality of income distribution to compute how equitable society is.
The Gini index, for example, is one of the most widely used measures of inequality to obtain a numerical value of equity in the distribution of a country’s outcome. The Gini index varies between 0 (perfect equality) of outcomes and 1 (perfect inequality). A policymaker who cares about fairness will tend to prefer a distribution that generates values as close to 0 as possible. However, the index is 0 when all incomes are perfectly the same for all and equal to the mean. So, when we apply this index, it is as if we were comparing an empirical distribution of incomes to a hypothetical one where all incomes are equal. Should we then consider the latter as the normative reference distribution? Or, posed differently, should our society aspire to this distributional model? It seems logical to think that such a solution is rather extreme, even impossible to achieve (...)
The Gini index, for example, is one of the most widely used measures of inequality to obtain a numerical value of equity in the distribution of a country’s outcome. The Gini index varies between 0 (perfect equality) of outcomes and 1 (perfect inequality). A policymaker who cares about fairness will tend to prefer a distribution that generates values as close to 0 as possible. However, the index is 0 when all incomes are perfectly the same for all and equal to the mean. So, when we apply this index, it is as if we were comparing an empirical distribution of incomes to a hypothetical one where all incomes are equal. Should we then consider the latter as the normative reference distribution? Or, posed differently, should our society aspire to this distributional model? It seems logical to think that such a solution is rather extreme, even impossible to achieve (...)
langue originale  Anglais 

Type  LIS issues a quarterly newsletter Inequality Matters focusing on inequality research 
Médias de la production  Website 
Editeur  LIS (CrossNational Data Center in Luxembourg) 
Lieu de publication  Luxembourg 
état  Publié  juin 2024 
Modification externe  Oui 
Série de publications
Nom  LIS Newsletter Inequality Matters 

Editeur  Luxembourg Institute of SocioEconomic Research (LISER) and the LIS CrossNational Data Center in Luxembourg (LIS) 
Numéro  30 
Projets
 1 Actif

(LIS)²ER: (LIS)²ER Initiative
Peluso, E. (PI), Van Kerm, P. (CoI), Munzi, T. (CoI), Fusco, A. (CoI), Islam, N. (CoI), Lee, K. (CoI) & Sauer, P. (CoI)
Luxembourg Institute of SocioEconomic Research LISER
1/01/20 → 31/12/25
Projet: Recherche