Analysis of Household Income in Poland by Regions Based on Selected Income Distribution

Authors

DOI:

https://doi.org/10.18778/0208-6018.352.06

Keywords:

household income, Dagum distribution, Zenga distribution, income inequality measures

Abstract

Research on income distributions focuses mainly on attempts to match theoretical distributions to the empirical income distribution and on the analysis of these distributions. The analysis results show that three‑parameter models very well approximate the income distribution of many countries. The Daguma distribution is recognised in the literature on income research as one of the best three parameter income distribution models. In 2010 Zenga proposed a new three‑parameter model for economic size distribution which possesses interesting statistical properties. The aim of this paper is to use the Dagum and Zenga model to analyze the distribution of Polish household income by regions. The D’Addario invariant methods and the maximum likelihood method were used to estimate the density function parameters. The calculations presented in the paper has been based on the individual data coming from the random sample obtained within the Household Budget Survey by regions by the Central Statistical Office in 2016. The article presents income inequality measures based on the considered models. The results of the calculations confirm that Zenga distribution is a good income distribution model which can be applied to analyze the income households of the Polish population.

Downloads

Download data is not yet available.

References

Arcagni A., Porro F. (2013), On the parameters of Zenga distribution, „Statistical Methods & Applications”, nr 22(3), s. 285–303. DOI: https://doi.org/10.1007/s10260-012-0219-y

Brzeziński M. (2013), Parametric modelling of income distribution in Central and Eastern Europe, „Central European Journal of Economic Modelling and Econometrics”, nr 35, s. 207–230.

Ćwiek M., Ulman P. (2019), Income and Poverty in Households in Selected European Countries, „Acta Universitatis Lodziensis. Folia Oeconomica”, t. 6, nr 345, s. 7–25. DOI: https://doi.org/10.18778/0208-6018.345.01

Dagum C. (1977), A New Model of Personal Income Distribution. Specification and Estimation, „Economie Applique”, t XXX, nr 3, s. 413–436.

Jędrzejczak A. (1993), Application of the Dagum distribution in the analysis of income distributions in Poland, „Acta Universitatis Lodziensis. Folia Oeconomica”, t. 131, s. 103–112.

Jędrzejczak A. (2006), The characteristic of theoretical income distributions and their application to the analysis of wage distributions in Poland by regions, „Acta Universitatis Lodziensis. Folia Oeconomica”, t. 196, s. 183–198.

Jędrzejczak A., Trzcińska K. (2018), Application of the Zenga distribution to the analysis of household income in Poland by socio‑economic group, „Statistica & Applicazioni”, t. 16, nr 2, s. 123–140.

Kleiber C., Kotz S. (2003), Statistical Size Distributions in Economics and Actuarial Sciences, Wiley, Hoboken. DOI: https://doi.org/10.1002/0471457175

Kordos J. (1968), Metody matematyczne badania i analizy rozkładów dochodów ludności, Główny Urząd Statystyczny, Warszawa.

Kordos J. (1973), Metody analizy i prognozowania rozkładów płac i dochodów ludności, Główny Urząd Statystyczny, Warszawa.

Kot S. M. (1999), Analiza ekonometryczna kształtowania się płac w Polsce w okresie transformacji, Wydawnictwo Naukowe PWN, Warszawa–Kraków.

Kot S. M. (2000), Ekonometryczne modele dobrobytu, Wydawnictwo Naukowe PWN, Warszawa–Kraków.

Lange O. (1967), Wstęp do ekonometrii, Państwowe Wydawnictwo Naukowe, Warszawa.

Łukasiewicz P., Orłowski A. (2004), Probabilistic Models of Income Distributions, „PhysicaA”, nr 344, s. 146–151. DOI: https://doi.org/10.1016/j.physa.2004.06.106

Ostasiewicz K. (2013), Adekwatność wybranych rozkładów teoretycznych dochodów w zależności od metody aproksymacji, „Przegląd Statystyczny”, t. 60, cz. 4, s. 499–521.

Polisicchio M. (2008), The continuous random variable with uniform point inequality measure, „Statistica & Applicazioni”, t. 6, nr 2, s. 137–151.

Porro F. (2015), Zenga Distribution and Inequality Ordering, „Communications in Statistics, Theory and Methods”, nr 44(18), s. 3967–3977. DOI: https://doi.org/10.1080/03610926.2013.819921

Ulman P. (2015), Income of household members in Poland, „Folia Oeconomica Cracoviensia”, t. LVI, s. 23–34.

Vielrose E. (1960), Rozkład dochodów według wielkości, Polskie Wydawnictwo Gospodarcze, Warszawa.

Zenga M. M. (2007), Inequality curve and inequality index based on the ratios between lower and upper arithmetic means, „Statistica & Applicazioni”, t. 5, nr 1, s. 3–28.

Zenga M. M. (2010), Mixture of Polisicchio’s Truncated Pareto Distributions with Beta Weights, „Statistica & Applicazioni”, t. 8, nr 1, s. 3–25.

Zenga M. M., Pasquazzi L., Zenga M. (2012), First Applications of a New Three Parameter Distribution for Non‑Negative Variables, „Statistica & Applicazioni”, t. 10, nr. 2, s. 131–149.

Zenga M. M., Pasquazzi L., Polisicchio M., Zenga M. (2011), More on M. M. Zenga’s New Three‑Parameter Distribution for Non‑Negative Variables, „Statistica & Applicazioni”, t. 9, nr 1, s. 5–33.

Downloads

Published

2021-04-01

Issue

Section

Articles

How to Cite

Trzcińska, Kamila. 2021. “Analysis of Household Income in Poland by Regions Based on Selected Income Distribution”. Acta Universitatis Lodziensis. Folia Oeconomica 1 (352): 111-26. https://doi.org/10.18778/0208-6018.352.06.