SERIE RESEARCH mEmORIMDII ON MULTIDIMENSIONAL INEQÜALITY COMPARISONS

This paper is addressed to comparing inequality in distributions of two or more variables. Based on an extended version of the Lorenz Curve criterion, a theorem is proved which says that total income is always less unequally distributed than the most unequally distributed income component. As an illustration, a decomposition of the coëfficiënt of variation of total income is given in terms of coefficients of variation of the income component. The possibilities are discussed to transfer the results of income inequality to the field of welfare inequality. An empirical illustration is given for interregional welfare inequalities in the Netherlands.