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How Much Inequality Can We Explain? A Methodology and an Application to the United States

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Author Info
Cowell, Frank A
Jenkins, Stephen P

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Abstract

The authors develop two simple measures of how much inequality is explained by individual population characteristics or groups of characteristics, analogous to R[superscript 2] in regression analysis. The authors investigate the measures' empirical implementation using several alternative theoretically consistent approaches to inequality decomposition. Results are illustrated using U.S. PSID income data. Copyright 1995 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 105 (1995)
Issue (Month): 429 (March)
Pages: 421-30
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Handle: RePEc:ecj:econjl:v:105:y:1995:i:429:p:421-30

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  1. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank. [Downloadable!]
  2. Davide Castellani & Francesco Serti & Chiara Tomasi, 2008. "Firms in International Trade: Importers and Exporters Heterogeneity in the Italian Manufacturing Industry," LEM Papers Series 2008/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  3. Heather Dickey, 2001. "Regional Earnings Inequality in Great Britain: A Decomposition Analysis," Regional Studies, Taylor and Francis Journals, vol. 35(7), pages 605-612, October. [Downloadable!] (restricted)
  4. Tregenna, F., 2009. "The Relationship Between Unemployment and Earnings Inequality in South Africa," Cambridge Working Papers in Economics 0907, Faculty of Economics, University of Cambridge. [Downloadable!]
  5. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," Journal of Economic Inequality, Springer, vol. 6(3), pages 231-245, September. [Downloadable!] (restricted)
  6. Stefananescu, Stefan, 2008. "Measuring the Socio-Economic Bipolarization Phenomenon," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(1), pages 149-161, March. [Downloadable!]
  7. Sergio J. Rey, 2001. "Spatial Analysis of Regional Income Inequality," Urban/Regional 0110002, EconWPA. [Downloadable!]
  8. Emmanuel Flachaire & Olivier G. Núñez, 2003. "Estimation Of Income Distribution And Detection Of Subpopulations: An Explanatory Model," Statistics and Econometrics Working Papers ws030201, Universidad Carlos III, Departamento de Estadística y Econometría. [Downloadable!]
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  9. De Hoyos, Rafael E., 2007. "Accounting for Mexican income inequality during the 1990s," Policy Research Working Paper Series 4224, The World Bank. [Downloadable!]
  10. Bussolo, Maurizio & De Hoyos, Rafael E. & Medvedev, Denis & van der Mensbrugghe, Dominique, 2008. "Global Growth and Distribution: Are China and India Reshaping the World?," Working Papers RP2008/29, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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  11. Elbers, Chris & Lanjouw, Peter & Mistiaen, Johan A. & Ozler, Berk, 2005. "Re-interpreting sub-group inequality decompositions," Policy Research Working Paper Series 3687, The World Bank. [Downloadable!]
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