Shapley-Value Decompositions of Changes in Wage Distributions: A Note
AbstractThis note shows how the Shapley-value can be applied to the regression-based methods that are often used to decompose changes in wage distributions. The method remedies the path-dependency exhibited by existing approaches that compute the contributions due to (i) changes in sample observable characteristics, (ii) changes in the return of characteristics, (iii) changes in the distribution of unobservable characteristics.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by LABORatorio R. Revelli, Centre for Employment Studies in its series LABORatorio R. Revelli Working Papers Series with number 80.
Date of creation: 2008
Date of revision:
regression-based decomposition methods; wage distribution; Shapley-value.;
Other versions of this item:
- Francesco Devicienti, 2010. "Shapley-value decompositions of changes in wage distributions: a note," Journal of Economic Inequality, Springer, vol. 8(1), pages 35-45, March.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-14 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996.
"Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach,"
Econometric Society, vol. 64(5), pages 1001-44, September.
- Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach," Cahiers de recherche 9406, Universite de Montreal, Departement de sciences economiques.
- Nidardo, J. & Fortin, N. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Papers 93-94-15, California Irvine - School of Social Sciences.
- Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Cahiers de recherche 9406, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- John DiNardo & Nicole M. Fortin & Thomas Lemieux, 1995. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," NBER Working Papers 5093, National Bureau of Economic Research, Inc.
- Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
- Stephane Mussard & Virginie Terraza, 2008.
"The Shapley decomposition for portfolio risk,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 15(9), pages 713-715.
- Borgarello Andrea & Devicienti Francesco, 2006. "L'aumento della disuguaglianza dei salari in Italia: premi salariali per le "nuove" skill?," Politica economica, Società editrice il Mulino, issue 2, pages 193-232.
- Bourguignon, Francois & Fournier, M & Gurgand, M, 2001. "Fast Development with a Stable Income Distribution: Taiwan, 1979-94," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(2), pages 139-63, June.
- Thomas Lemieux, 2002. "Decomposing changes in wage distributions: a unified approach," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 646-688, November.
- Shorrocks, Anthony F, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, MIT Press, vol. 98(2), pages 311-26, May.
- Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
- Jonathan Morduch & Terry Sicular, 2002.
"Rethinking Inequality Decomposition, With Evidence from Rural China,"
Royal Economic Society, vol. 112(476), pages 93-106, January.
- Jonathan Morduch & Terry Sicular, 1998. "Rethinking Inequality Decomposition, with Evidence from Rural China," Harvard Institute of Economic Research Working Papers 1831, Harvard - Institute of Economic Research.
- Mercedes Sastre & Alain Trannoy, 2002. "Shapley inequality decomposition by factor components: Some methodological issues," Journal of Economics, Springer, vol. 9(1), pages 51-89, December.
- José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- Wan, Guanghua, 2004. "Accounting for income inequality in rural China: a regression-based approach," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 348-363, June.
- Baumgarten, Daniel, 2013.
"Exporters and the rise in wage inequality: Evidence from German linked employer–employee data,"
Journal of International Economics,
Elsevier, vol. 90(1), pages 201-217.
- Daniel Baumgarten, 2010. "Exporters and the Rise in Wage Inequality – Evidence from German Linked Employer-Employee Data," Ruhr Economic Papers 0217, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Arthur Charpentier & Stéphane Mussard, 2011.
"Income inequality games,"
Journal of Economic Inequality,
Springer, vol. 9(4), pages 529-554, December.
- Arthur Charpentier & Stephane Mussard, 2010. "Income Inequality Games," Cahiers de recherche 10-03, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Arthur Charpentier & Stéphane Mussard, 2010. "Income Inequality Games," Working Papers 10-01, LAMETA, Universtiy of Montpellier, revised Jan 2010.
- Arthur Charpentier & Stéphane Mussard, 2010. "Income Inequality Games," Working Papers hal-00456573, HAL.
- Deutsch, Joseph & Fusco, Alessio & Silber, Jacques, 2013.
"The BIP Trilogy (bipolarization, inequality and polarization): One saga but three different stories,"
Economics - The Open-Access, Open-Assessment E-Journal,
Kiel Institute for the World Economy, vol. 7(22), pages 1-33.
- Deutsch, Joseph & Fusco, Alessio & Silber, Jacques, 2012. "The BIP trilogy (bipolarization, inequality and polarization): One saga but three different stories," Economics Discussion Papers 2012-49, Kiel Institute for the World Economy.
- Rosalba Manna & Andrea Regoli, 2012. "Regression-based approaches for the decomposition of income inequality in Italy, 1998-2008," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 14(1), pages 5-18, October.
- Slonimczyk, Fabian, 2011.
"Earnings inequality and skill mismatch in the U.S.: 1973-2002,"
35449, University Library of Munich, Germany.
- Fabián Slonimczyk, 2013. "Earnings inequality and skill mismatch in the U.S.: 1973–2002," Journal of Economic Inequality, Springer, vol. 11(2), pages 163-194, June.
- Masato Okamoto, 2011. "Source decomposition of changes in income inequality: the integral-based approach and its approximation by the chained Shapley-value approach," Journal of Economic Inequality, Springer, vol. 9(2), pages 145-181, June.
- HILDEBRAND Vincent & PI ALPERIN Maria Noel & VAN KERM Philippe, 2012. "Measuring and accounting for the deprivation gap of Portuguese immigrants in Luxembourg," CEPS/INSTEAD Working Paper Series 2012-33, CEPS/INSTEAD.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert).
If references are entirely missing, you can add them using this form.