Inequality decomposition by factor component : a “rank-correlation” approach illustrated on the Taiwanese case
AbstractThis paper systematises the method initiated by Burtless (1999) and provides a general framework for decomposing inequality by factor components. It has the double advantage over usual decomposition procedures to allow for a decomposition of changes in the whole income distribution and to distinguish between the effect of marginal distribution changes of income sources and that of changes in correlation between income sources. An illustration is provided for Taiwan, which emphasises the central role played by changes in assortative mating of spouses.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2001042.
Date of creation: 01 Dec 2001
Date of revision:
Income distribution; inequality decomposition by factor components;
Find related papers by JEL classification:
- D3 - Microeconomics - - Distribution
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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