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Multidimensional welfare distributions: empirical application to household panel data from Vietnam

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Abstract:

This article explores the empirical application of theoretical multidimensional welfare distribution analysis techniques to real household welfare distributions. The article operationalizes recent conceptual developments in multidimensional distribution theory and assesses their usefulness for the measurement of multidimensional household inequality. The results strongly highlight the importance of bringing nonmonetary aspects of household welfare into the forefront of inequality analysis. Agreement over the various approaches to the measurement of multidimensional inequality entails, however, nontrivial decisions that may limit the practical usefulness of these measures. We suggest that the use of multidimensional inequality ranges and the application of restrictive dominance criteria to multidimensional welfare distributions may open significant scope for further developments in the empirical analysis of multidimensional inequality.

Keywords: D31; D63; I19; I29; inequality indices; multidimensional inequality; multidimensional welfare distributions; stochastic dominance

Document Type: Research Article

DOI: https://doi.org/10.1080/00036846.2011.577014

Affiliations: Institute of Development Studies, Brighton, UK

Publication date: 2012-09-01

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