Scandinavian Working Papers in Economics

Discussion Papers on Economics,
University of Southern Denmark, Department of Economics

No 1/2015: Ordinal bivariate inequality: concepts and application to child deprivation in Mozambique

Christoffer Sonne-Schmidt, Finn Tarp and Lars Peter Østerdal ()
Additional contact information
Christoffer Sonne-Schmidt: The Danish National Centre for Social Research, Postal: Denmark
Finn Tarp: Department of Economics, Postal: University of Copenhagen, Denmark, and UNU-WIDER
Lars Peter Østerdal: Department of Business and Economics, Postal: University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark

Abstract: This paper introduces a concept of inequality comparisons with ordinal bivariate categorical data. In our model, one population is more unequal than another when they have common arithmetic median outcomes and the first can be obtained from the second by correlation-increasing switches and/or median-preserving spreads. For the canonical 2x2 case (with two binary indicators), we derive a simple operational procedure for checking ordinal inequality relations in practice. As an illustration, we apply the model to childhood deprivation in Mozambique.

Keywords: Qualitative data; two-dimensional first order dominance; multidimensional inequality; ordinal comparison; childhood deprivation

JEL-codes: D63; I32; O15

31 pages, February 3, 2015

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