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Activity Number: 532 - Can Statistics Inform Decisions in Social, Economic, and Political Event?
Type: Contributed
Date/Time: Wednesday, August 1, 2018 : 10:30 AM to 12:20 PM
Sponsor: Social Statistics Section
Abstract #328578
Title: Linking Input Inequality and Outcome Inequality
Author(s): Guillermina Jasso*
Companies: New York University
Keywords: inequality; inequality measures; input-outcome functions; probability distributions; Gini, Atkinson, Theil measures; lognormal, Pareto, power-function
Abstract:

Inequality often appears in linked pairs of variables. Examples include schooling and income, income and consumption, wealth and status. Understanding inequality requires understanding input inequality, outcome inequality, and the relation between the two. This paper contributes to the statistical toolkit for studying inequality by developing a framework that makes explicit these two kinds of inequality and by addressing three main associated questions: (1) How do the mechanisms for generating and altering inequality differ across inputs and outcomes? (2) Which have more inequality - inputs or outcomes? (3) Under what conditions, and by what mechanisms, does input inequality affect outcome inequality? Results include: First, under certain specified conditions, distinctive mechanisms govern inequality in inputs and outcomes. Second, whether inequality is greater among inputs or outcomes depends on the configuration of inputs and outcomes; outcome inequality can be zero, providing refuge from input inequality but also hindering efforts to reduce it. Third, the link between input inequality and outcome inequality can be nonexistent or vary in shape, presenting empirical challenges.


Authors who are presenting talks have a * after their name.

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