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Equality of What Experimental Tests of Multidimensional Inequality Measures
1
Equality of What?
Experimental Tests of Multidimensional Inequality Measures
HAN BLEICHRODT, KIRSTEN I.M. ROHDE TOM VAN OURTI
Erasmus School of Economics, Rotterdam
November 2008
Abstract
Reducing inequality in well-being is an important aim of social policy. Most
empirical research on inequality measurement has focused on a single dimension.
Well-being is, however, multidimensional, being determined by several dimensions
simultaneously. A number of multidimensional inequality measures have been
proposed, but no insight exists into which of these measures most closely connects
with what people find important. We test several of the assumptions underlying these
measures. We find support for measures that say that decreases in the spread of
dimensions are socially desirable. Our data are not consistent with measures that say
that decreases in the correlation between dimensions are socially desirable. Finally,
we find support for Gajdos and Weymark’s (2005) two-stage procedure where in the
first stage the inequality in the distribution of each dimension is measured and in the
second stage these dimension-specific inequality measures are aggregated.
JEL code: D30, D63, I30
KEYWORDS: multidimensional inequality, experimental measurement, social choice.
ACKNOWLEDGEMENTS: We thank Aurélien Baillon, Werner Brouwer, Koen Decancq, Peter De Keyzer,
Esen Erdogan Ciftci, Jeroen Eynikel, Owen O’Donnell, Erik Schokkaert, Eddy van Doorslaer, Ellen
Van de Poel, and Hans van Kippersluis for comments or help with the experiment. This research was
made possible through grants from the Netherlands Organization for Scientific Research (NWO) and
the NETSPAR project “Income, health and work across the life cycle”.
2
1. Introduction
Reducing inequalities in well-being is an important aim of economic and
social policy. For example, both the World Health Organization (WHO 2000) and the
World Bank (World Bank 2006) explicitly mention it as a major ob
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