Statistical and related income inequality measures, with no explicit specification of a probability density- or welfare-function

Abstract

In this study an indicator associated with the distribution of personal incomes is considered to be an important element in the regional welfare profile. Obvious indicators of regional income differences at an aggregated level are income per recipient and income per capita. However, these location parameters reveal only a very partial characteristic of the incomes received by persons in the regions. In order to make welfare comparisons, more information related to income distributions is required. In fact we need a quantitative indicator which informs us to some extent how the total regional income is distributed among the recipients.