<abstract xmlns="http://www.w3.org/1999/xhtml">

<bold>Research background:</bold> Studies of income distributions may focus on describing empirical distributions by theoretical models. This approach can be useful for many reasons. When choosing a statistical model, it is important both to find out a theoretical distribution function that would characterize empirical frequency distribution and to choose suitable methods to calculate the parameters of the model. In the literature, there are proposals for various types of mathematical functions. Very high accuracy with empirical distribution is characteristic for Dagum and log-normal models. In 2010 Zenga proposed a new three-parameter model for economic size distribution which possesses interesting statistical properties.
<bold>Purpose:</bold> The aim of this paper is to apply and compare Dagum, log-normal and Zenga models to income distributions in Poland and Slovakia.
<bold>Research methodology:</bold> The studies are based on research data from the European Quality of Life Surveys (EQLS), whose purpose is to measure both objective and subjective indicators of the standard of living of citizens and their households. The estimation parameters were obtained by means of the maximum likelihood method and D’Addario’s invariants method.
<bold>Results:</bold> The results of the conducted approximations, presented in the paper confirmed the good consistency of the Dagum and Zenga distributions with the empirical income distribution of households in Poland and Slovakia.
<bold>Novelty:</bold> The Zenga distribution was used for the first time to describe the income distribution of the Slovak population and it allows the best fit to the empirical data of this country.
</abstract>

Research background: Studies of income distributions may focus on describing empirical distributions by theoretical models. This approach can be useful for many reasons. When choosing a statistical model, it is important both to find out a theoretical distribution function that would characterize empirical frequency distribution and to choose suitable methods to calculate the parameters of the model. In the literature, there are proposals for various types of mathematical functions. Very high accuracy with empirical distribution is characteristic for Dagum and log-normal models. In 2010 Zenga proposed a new three-parameter model for economic size distribution which possesses interesting statistical properties.
Purpose: The aim of this paper is to apply and compare Dagum, log-normal and Zenga models to income distributions in Poland and Slovakia.
Research methodology: The studies are based on research data from the European Quality of Life Surveys (EQLS), whose purpose is to measure both objective and subjective indicators of the standard of living of citizens and their households. The estimation parameters were obtained by means of the maximum likelihood method and D’Addario’s invariants method.
Results: The results of the conducted approximations, presented in the paper confirmed the good consistency of the Dagum and Zenga distributions with the empirical income distribution of households in Poland and Slovakia.
Novelty: The Zenga distribution was used for the first time to describe the income distribution of the Slovak population and it allows the best fit to the empirical data of this country.

An Analysis of Household Income in Poland and Slovakia Based on Selected Income Models

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Research background: Studies of income distributions may focus on describing empirical distributions by theoretical models. This approach can be useful for...

An Analysis of Household Income in Poland and Slovakia Based on Selected Income Models

Online veröffentlicht: 18. Juni 2022

Seitenbereich: 287 - 301

Eingereicht: 17. Feb. 2022

Akzeptiert: 04. Apr. 2022

DOI: https://doi.org/10.2478/foli-2022-0014

Schlüsselwörter
income distribution, Dagum model, log-normal model, Zenga model, Gini index, Atkinson index, Sen index, Kakwani index

© 2022 Kamila Trzcińska, published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

An Analysis of Household Income in Poland and Slovakia Based on Selected Income Models

Online veröffentlicht: 18. Juni 2022

Seitenbereich: 287 - 301

Eingereicht: 17. Feb. 2022

Akzeptiert: 04. Apr. 2022

DOI: https://doi.org/10.2478/foli-2022-0014

Schlüsselwörterincome distribution, Dagum model, log-normal model, Zenga model, Gini index, Atkinson index, Sen index, Kakwani index

© 2022 Kamila Trzcińska, published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Schlüsselwörter
income distribution, Dagum model, log-normal model, Zenga model, Gini index, Atkinson index, Sen index, Kakwani index