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Multidimensional Inequality: Measurement and Analysis using the American Community Survey

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Working Paper Number SEHSD-WP2019-17

Abstract

This paper creates a multidimensional inequality measure using the American Community Survey.   Rather than limiting the study of inequality to income, this measure also includes inequality in leisure, health, education, housing, and vehicle ownership.  There are two ways that inequality in different dimensions have been studied.  The first is the individual approach.  This involves analyzing and discussing each dimension’s inequality one at a time.  The second is an aggregation approach in which a single aggregated measure of inequality is produced.  The analysis in this paper focuses on three main areas.  First, to examine how multidimensional inequality results change when choices of parameters change.  The varying parameters in this case are the degree of substitutability among the dimensions and the degree of aversion to inequality.  Second, to compare inequality using the individual approach and the aggregate approach to each other as well as to traditional unidimensional income inequality measures.  Third, to examine how multidimensional inequality varies over time and by state.

Page Last Revised - October 8, 2021
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