Income Inequality and the Definition of Income

The Case of Malaysia

by Michael W. Kusnic, Julie DaVanzo

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 6.7 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback137 pages $35.00 $28.00 20% Web Discount

Explores the sensitivity of estimates of Malaysian income levels, interethnic or urban/rural differences, and income inequality to several factors. Using four measures of income, the report shows that estimates of income inequality in Malaysia or among its ethnic subgroups are very sensitive to how broadly income is defined and to the other factors examined. For example, failure to consider nonmarket sources of income leads to serious underestimates of the relative income share of the poorest quintile of the population; that share more than doubles when the definition of income is broadened from market income to measures that include the value of nonmarket production, such as cottage industry. Such startling disparities should warn researchers and policymakers to be extremely careful in processing and interpreting income data, especially when comparing data from different studies, countries, or periods.

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.