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The Components of Income Inequality in Belgium: Applying the Shorrocks-Decomposition with Bootstrapping

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  • Dekkers, G.J.M.
  • Nelissen, J.H.M.

    (Tilburg University, Center for Economic Research)

Abstract

We look at the contribution of various income components on income inequality and the changes in this in Belgium.Starting from the Shorrocks decomposition, we apply bootstrapping to construct confidence intervals for both the annual decomposition and the changes over time.It appears that the redistributive impact of the Belgian social security system did not become smaller in an absolute sense between 1985 and 1997, but - due to the large increase in labour income inequality - only in a proportional sense.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2001-66.

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Date of creation: 2001
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Handle: RePEc:dgr:kubcen:200166

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Related research

Keywords: bootstrap; income distribution; inequality;

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References

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  1. Dekkers, gijs, 1999. "The future development of living standards of the retirees in Belgium. [:] an application of the static microsimulation model station," MPRA Paper 36005, University Library of Munich, Germany.
  2. Jeffrey A. Mills & Sourushe Zandvakili, 1999. "Statistical Inference via Bootstrapping for Measures of Inequality," Macroeconomics 9902003, EconWPA.
  3. Daniel T. Slesnick, 1998. "Empirical Approaches to the Measurement of Welfare," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2108-2165, December.
  4. 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.
  5. Schwarze, Johannes, 1996. "How Income Inequality Changed in Germany following Reunification: An Empirical Analysis Using Decomposable Inequality Measures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(1), pages 1-11, March.
  6. Zandvakili, Sourushe & Mills, Jeffrey A., 2001. "The distributional implications of tax and transfer programs in US," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(2), pages 167-181.
  7. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
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Cited by:
  1. Eva Rueckert, 2003. "Bootstrapping the European Gender Wage Gap," Working Papers E04, Department of Economics, School of Management and Languages, Heriot Watt University.
  2. Rueckert, Eva, 2003. "Bootstrapping the European Gender Wage Gap," IRISS Working Paper Series 2003-10, IRISS at CEPS/INSTEAD.

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