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.
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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)
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