Silber, JacquesVerme, Paolo2012-03-192012-03-192012-01-01https://hdl.handle.net/10986/3216This paper proposes two new indices of relative deprivation, derived from an extension of the concept of the generalized Gini for the measurement of distributional change. Population- and income-weighted relative deprivation indices are then defined and, using panel data from the Consortium of Household Panels for European Socio-Economic Research, this paper checks which of the various ways of defining individual deprivation best fits the answers given by individuals on the degree of their satisfaction with income. The analysis finds that the deprivation indices proposed are consistently and negatively correlated with income satisfaction as reported by respondents, that income weighted measures fit better than population weighted measures, and that this fit improves with countries that experienced deep institutional changes such as the transitional economies of Eastern Europe.CC BY 3.0 IGOAVERAGE INCOMEAVERAGE INCOMESBORROWINGCROSS-COUNTRY DIFFERENCESDATA SETDEFLATORSDEPENDENT VARIABLEDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISTRIBUTION OF INCOMESDISTRIBUTIONAL CHANGEECONOMIC CONDITIONSECONOMIC INEQUALITYECONOMIC OUTLOOKECONOMIC POLICYECONOMIC RESEARCHECONOMIC REVIEWECONOMIC STATISTICSECONOMIC THEORYEMPIRICAL ANALYSISEMPIRICAL LITERATUREEXPLANATORY FACTORSEXPLANATORY POWERGINI COEFFICIENTGINI INDEXHOUSEHOLD BUDGET SURVEYHOUSEHOLD MEMBERSHOUSEHOLD SIZEHOUSEHOLD SURVEYSIMPERFECT INFORMATIONINCOMEINCOME DISTRIBUTIONINCOME EFFECTINCOME INEQUALITYINCOME SHAREINCOME SHARESINCOMESINDIVIDUAL INCOMESINEQUALITYINEQUALITY AVERSIONINEQUALITY AVERSION PARAMETERINEQUALITY MEASUREMENTLABOR FORCELABOR MARKETLABOURLOCAL CURRENCYMANPOWERMARKET ECONOMYMEASUREMENT ERRORSPOLICY DISCUSSIONSPOLICY RESEARCHPOPULATION SHAREPUBLIC ECONOMICSRELATIVE INCOMERELATIVE POSITIONSOCIOECONOMIC RESEARCHSOCIOLOGISTSTRANSITION COUNTRIESUNEMPLOYMENTUTILITY MAXIMIZATIONWELL-BEINGWorld Bank10.1596/1813-9450-5930