On the Lorenz order within parametric families of income distributions

This paper provides a unified approach to Lorenz ordering within almost all commonly considered families of income distributions. For the most general model, the four-parameter generalized beta of the second kind (GB2), I derive a new sufficient condition. Unlike previous results, this criterion is empirically relevant; I find that inequality was lower in Germany than in the US in 1985 when both empirical distributions are approximated bythe GB2.