The use of mean values vs. medians in inequality analysis

Poverty lines that are proportional to either the mean value or the median of income distributions are compared by statistical properties and in the light of poverty axioms. Poverty lines are extended from all incomes such that any particular income is considered as smallest of all larger incomes. This induces classes of income distributions with the distributions for the median being much more unequal than for the mean value.
 
A revised version of the paper has appeared in the Journal of Economic and Social Measurement 35, 2010. p. 43-62.