Polarization Orderings of Income Distributions

This paper considers an intermediate notion of polarization which is defined as a convex mix of relative and absolute concepts of polarization. While absolute polarization indices remain unchanged under equal absolute augmentation in all incomes, relative indices do not change under equiproportionate variations in all incomes. We then identify the class of intermediate polarization indices whose orderings of alternative income distributions agree with the rankings generated by intermediate polarization curves. The ranking relation developed is implemented by a simple graphical device. Finally, a numerical illustration of the results developed in the paper is provided using data from Southern European countries. © 2009 The Authors. Journal compilation © International Association for Research in Income and Wealth 2009.