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Kaveh Majlesi
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Another thing that should be taken into consideration is that, given a specific set of skills one owns or how much one works, where she would be placed in the two distributions. If person A could be placed in top 5 percent in Holland working 8 hours a day, it is not clear she would be in the same category in the United States. This makes the comparison between groups across the two countries more complicated, I believe.
Are Americans better off than the Dutch?
For a lot of questions, comparisons of per-capita GDP yield the correct answer to a first-order of approximation. For example, are Americans richer than the Chinese? A comparison of GDPs per capita, adjusted for PPP differences, yields an unambiguous answer in favor of the U.S. Yes, income may...
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Aug 24, 2012
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