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Re: st: calculating income deprivation in stata
From
Stas Kolenikov <[email protected]>
To
[email protected]
Subject
Re: st: calculating income deprivation in stata
Date
Sat, 28 Aug 2010 11:35:32 -0500
It looks like you are reinventing the wheel with income inequality
calculations. What you describe is pretty close to the Gini index,
which would be the average income deprivation you just described, with
some normalization. You might want to look in more detail into income
distribution literature, such as books by Lambert (something like
"Distribution and redistribution of income"), and Sen & Foster
(something like "Economic Inequality").
On Sat, Aug 28, 2010 at 6:31 AM, Dimitrije Tišma
<[email protected]> wrote:
> Hello,
>
> I am trying to construct a variable indicating individual's relative
> standing in the society as measured by income and other parameters.
> When speaking of income, one of possibilities is to consider income
> percentiles and to use commands such as -pctile- and -xtile-. But, I
> would also give it a try with income deprivation and this is where the
> things get more complicated.
>
> Namely, I want to construct a variable called income deprivation
> score. Each individual A in the dataset would be assigned a score that
> is the sum of all income differentials between individual A and all
> other individuals who have a higher income than individual A. Do you
> know of any Stata code that can help? I have only been able to find
> -mdepriv- but it can only work with dichotomous deprivation indices,
> which is not very useful when working with income. Or, alternatively,
> what would be syntax if user-written code as such does not exist? Many
> thanks in advance!
>
> Dimitrije
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>
--
Stas Kolenikov, also found at http://stas.kolenikov.name
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