Sourushe Zandvakili

A class of generalized measures of mobility with applications

Abstract A class of anonymous measures of mobility is defined that considers the relationship between the long-run and short-run distributions of income. Several measures of long-run income and inequalityare explored. Michigan panel data are analyzed.

Generalized entropy measures of mobility for different sexes and income levels

Abstract A family of mobility measures is investigated using the Michigan panel data on income dynamics, These measures are decomposed in order to learn about components that are due to differences in gender and income groups, on the one hand, and within-group components which are free of such group characteristics. These measures compute the degree of equalization over time of the distribution of ‘permanent incomes’. Permanent or average income of an individual is computed over an increasing number of points within a time interval of interest. This degree of equality is compared (as a ratio) to the equality of incomes at any reference point of interest in order to give us a measure of stability in the size distribution of incomes. We take an average of inequality values over the time interval as our reference value for ‘short-run’ inequality. Mobility is greater the greater this degree of relative equalization. Several aggregator functions have been used to compute the ‘permanent income’ variable. Their justification and role in robustifying our inferences is briefly discussed. The mobility profiles here suggest that there has not been much equalization between different sexes, but there is not a lot of inequality between these groups in our sample. Most of the inequality is within groups where the annual distributional changes belie the relative stability of the permanent income distribution.

Data- and metrics-driven approach to human resource practices: Using customers, employees, and financial metrics

Should scientific measures be used to evaluate the effectiveness of HRM practices? Can HRM demonstrate that its proposals cause a predicted outcome? If the allocation of capital within an organization is based upon projected financial returns, should HRM be required to demonstrate the expected returns of its proposals? Would the use of scientific and financial measures give HRM practices greater internal support and continuity? The authors demonstrate how metrics were used to evaluate two new HRM projects at one of the worlds largest retailers.

Income Inequality among Female Heads of Households: Racial Inequality Reconsidered

This paper investigates the factors that might have influenced earnings inequality among female heads of households over an extended period. The study used the generalized entropy measures of inequality in short-run as well as long-run income for the period 1978-86. The results suggest that short-run inequality has generally increased. These fluctuations are due partially to the existence of transitory components which distort the authors view. The measured long-run inequality shows a decline in the early years because of the smoothing of the transitory components. Race in conjunction with age, education and marital status is used to investigate their effects. Race and education are shown to be the most influential factors. The mobility profiles show the existence of permanent inequality among female heads of households. Copyright 1999 by The London School of Economics and Political Science

The distributional implications of tax and transfer programs in US

Abstract The distributional consequences of changes in tax laws and transfer programs in the United States are studied. Using detailed household income data from the Panel Study of Income Dynamics (PSID) from 1981–91, income inequality is measured for both pretax/transfer and post-tax/transfer definitions of household income. A new statistical methodology for assessing the impact of changes in taxes and transfers on the size distribution of income is utilized. Confidence intervals are constructed for various measures of inequality, and hypothesis tests are conducted to determine whether observed changes in the distribution of income due to taxes and transfers are statistically significant. Using decomposable measures of inequality, the implications of type of tax table used are investigated.

Analysis of gender-based family income inequality in Canada

Using decomposable measures of inequality and applying bootstrapping methods in order to draw statistical inference, gender-based earnings inequality in conjunction with education and immigration status in Canada is investigated.

Dynamics of earnings inequality among female-headed households in the United States

Abstract The labor market in the United States has gone through a number of noticeable changes, one of which is a rise participation of women in the labor force. A number of studies have investigated the consequences of these changes on wage, income, or earnings inequality in a static framework. This study investigated the consequences of these changes on earnings inequality over time. The earnings inequality among male- and female-headed households is compared. I further considered the factors that might have influenced the earnings inequality among female-headed households. Short-term and long-term inequality was measured from 1978–1986. It was found that short-term inequalities generally have a rising trend and contain transitory components; long-term inequalities declined in the early years because of a smoothing of transitory components; and within-group inequalities are the principle determinant of overall inequality. Education, race, age, and marital status were considered as possible contributors to the overall inequality. Education and race were shown to be the most influential factor explaining inequality among female-headed households and explained a third of the observed inequality. Earnings stability profiles reveal the existence of permanent and chronic inequality.

Decomposable measures of income tax progressivity

A class of decomposable income tax progressivity indices is defined by using a family of generalized entropy measures. For demonstration, changes in income tax progressivity in the United States are studied over time.

Generalized entropy measures of long-run inequality and stability among male headed households

This paper provides measures of short and long-run inequalities as well as income stability among households with male heads using the panel study of income dynamics for the period 1969–1981. It is found that short-run inequalities have been increasing over the time period examined. Moreover, some fluctuations around this increasing trend are of a transitory nature and appear to be smooth over time. Long-run measures are less subject to fluctuations and provide a better measure of inequality. They show a decrease in inequality in the early periods but increases after the mid-1970s. Several aggregator functions are used to compute “permanent income” variables for the long-run measures of inequality and stability. The measures are decomposed to reflect differences in age, education, and race. They are decomposed also into groups which are free of such group characteristics. Education has the most important influence on inequality. Stability profiles indicate, furthermore, most of the reduction in inequality in the early periods has been within particular groups. Reductions across groups are minimal.

Advances in Inequality Measurement and Usefulness of Statistical Inference

Assessment of inequality measurement is the focus for this survey. All measures of inequality must be evaluated based on a set of desirable properties. More importantly, the usefulness of statistical inference for measures of inequality needs examination.