Book Reviews

Anna Soci of University of Bologna reviews “Histories of Global Inequality: New Perspectives” edited by Christian Olaf Christiansen and Steven L. B. Jensen. The Econlit abstract of this book begins: “Thirteen papers offer a historical approach to global inequalities that supplements the existing economic research literature, focusing on themes such as decolonization, international organizations, gender theory, discrimination and human rights, the history of measurement of inequality, and the history of economic thought.”

Measurement of inequality of opportunity: A normative approach

We develop a normative approach to the measurement of inequality of opportunity. That is, we measure inequality of opportunity by the welfare gain obtained in moving from the actual income distribution to the optimal income distribution of the total available income. Our study brings together the main approaches in the literature: we axiomatically characterize social welfare functions, we obtain prominent allocation rules as their optima, and we derive familiar classes of inequality of opportunity measures. Our analysis captures moreover the key philosophical distinctions in the literature: ex post versus ex ante compensation, and liberal versus utilitarian reward.

Measurement of Inequality and Compression of Mortality in India for 4 Decades: 1970–2015

The studies relating to measurement of compression of Mortality in India is scarce. Most of the studies relating to mortality in India are focused on either life expectancy, or adult, and child mortality. We have used methods suggested by Kannisto (2000) and Canudos (2008) to measure the compression of mortality phenomenon for India for four decades viz. 1970-2015. Dispersion measures like simple mean, median, modal age at death; and some complicated measures like life disparity, standard deviation above mode, standard deviation in highest quartile, Interquartile range, Gini coefficient, AID and C-family were calculated for India from 1970-2015. We used the age specific death rates from abridged Life tables given by Sample Registration System published by Govt. of India. Our results show that inequality in mortality is decreasing in general but the gap between male and female is increasing. There was an average of three years difference in mean and modal age at death between male females in 2011-15. Overall, mean, median and modal age at death has increased in four decades but other inequality measures like Gini coefficient, AID, Standard deviation (SD) and coefficient of variation has decreased in four decades in India. C50 indicator, which indicates that 50 percent of deaths are happening in that age interval, declined from 26 years to 20 years for males and 27 years to 17 years for females, thus indicating the rate of compression of mortality is higher for females than males in India during 1970-75 till 2011-15.

Business Incomes at the Top

Business income constitutes a large and increasing share of income and wealth at the top of the distribution. We discuss how tax policy treats and shapes how businesses are organized and how they distribute economic gains to owners, with the focus on closely held and pass-through firms. These considerations influence whether and how labor and capital income is observed in economic data and feed into research controversies regarding the measurement of inequality and the progressivity of the tax code. We discuss the importance of these issues in the United States and highlight that limited evidence from other countries suggests that they are likely to be important elsewhere.