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Oaxaca-Blinder decomposition of changes in means and inequality: A simultaneous approach

Author

Listed:
  • Arthur Charpentier

    (UQAM)

  • Emmanuel Flachaire

    (Aix-Marseille University, AMSE)

Abstract

In this paper, we show that a decomposition of changes in inequality, with the mean log deviation index, can be obtained directly from the Oaxaca-Blinder decompositions of changes in means of incomes and log-incomes. It allows practitioners to conduct simultaneously empirical analyses to explain which factors account for changes in means and in inequality indices between two distributions with strictly positive values.

Suggested Citation

  • Arthur Charpentier & Emmanuel Flachaire, 2024. "Oaxaca-Blinder decomposition of changes in means and inequality: A simultaneous approach," Economics Bulletin, AccessEcon, vol. 44(1), pages 308-320.
    • Handle: RePEc:ebl:ecbull:eb-23-00234
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    File URL: http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I1-P26.pdf
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    More about this item

    Keywords

    Inequality; Oaxaca-Blinder decomposition; MLD index;
    All these keywords.

    JEL classification:

    • Y1 - Miscellaneous Categories - - Data: Tables and Charts
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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