TY - JOUR
T1 - Relative deprivation
T2 - a new derivation and application
AU - Sung, Jaesang
AU - Qiu, Qihua
AU - Marton, James
N1 - Publisher Copyright:
© 2020 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2021
Y1 - 2021
N2 - We derive and express the Yitzhaki index of relative deprivation as a function of mean and median household income within a reference group and one’s income, under the assumption that individual income follows the log-normal distribution or the Pareto distribution. We also suggest a way to calculate annual US regional mean and median household income in each reference group using aggregate income and household size data. Therefore, unlike prior literature that utilizes Decennial Census data due to its big sample size, our suggested methodology allows annual calculation of relative deprivation at different levels of geography (state or county). In an application of the derived index presented to illustrate its feasibility, we analyse the relationship between relative deprivation and mental health, finding suggestive evidence that increases in relative deprivation negatively affect mental health in the United States.
AB - We derive and express the Yitzhaki index of relative deprivation as a function of mean and median household income within a reference group and one’s income, under the assumption that individual income follows the log-normal distribution or the Pareto distribution. We also suggest a way to calculate annual US regional mean and median household income in each reference group using aggregate income and household size data. Therefore, unlike prior literature that utilizes Decennial Census data due to its big sample size, our suggested methodology allows annual calculation of relative deprivation at different levels of geography (state or county). In an application of the derived index presented to illustrate its feasibility, we analyse the relationship between relative deprivation and mental health, finding suggestive evidence that increases in relative deprivation negatively affect mental health in the United States.
KW - income distribution
KW - mental health
KW - relative deprivation
KW - Yitzhaki index
UR - http://www.scopus.com/inward/record.url?scp=85087153280&partnerID=8YFLogxK
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U2 - 10.1080/13504851.2020.1781765
DO - 10.1080/13504851.2020.1781765
M3 - Article
AN - SCOPUS:85087153280
SN - 1350-4851
VL - 28
SP - 784
EP - 787
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 9
ER -