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What Drives Differences in Inequality Across Countries?

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Author Info
Miguel Székely
Marianne Hilgert
Abstract

This paper presents microeconomic simulation techniques to examine what drives differences in inequality across countries. The simulation decomposes cross-country inequality differences into the importance of individual decisions, such as fertility, mating, labor force participation, and household structure, while at the same time including information on the importance of different income sources. The decomposition is applied to household survey data from 35 countries from 6 regions in the world. The empirical results provide insights into the transmission mechanisms through which inequality is generated.

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Paper provided by Inter-American Development Bank, Research Department in its series RES Working Papers with number 4243.

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Date of creation: Nov 2000
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Handle: RePEc:idb:wpaper:4243

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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.:

  1. Anthony B. Atkinson & Andrea Brandolini, 2000. "Promise and Pitfalls in the Use of 'Secondary' Data-Sets: Income Inequality in OECD Countries," Temi di discussione (Economic working papers) 379, Bank of Italy, Economic Research Department. [Downloadable!]
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  2. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
  3. Sutherland, H., 1996. "Households, Individuals and the Re-Distribution of Income," Cambridge Working Papers in Economics 9614, Faculty of Economics, University of Cambridge.
  4. Philippe Aghion & Eve Caroli & Cecilia Garcia-Penalosa, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December. [Downloadable!] (restricted)
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  5. Kremer, Michael, 1997. "How Much Does Sorting Increase Inequality?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 115-39, February.
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  6. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04. [Downloadable!] (restricted)
  7. Bourguignon, Francois & Chiappori, Pierre-Andre, 1992. "Collective models of household behavior : An introduction," European Economic Review, Elsevier, vol. 36(2-3), pages 355-364, April. [Downloadable!] (restricted)
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  8. Frank A Cowell, 1996. "Family Instability, Family Incomes and Inequality," STICERD - Distributional Analysis Research Programme Papers 12, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  9. Behrman, Jere R., 1993. "Intrahousehold distribution and the family," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 4, pages 125-187 Elsevier. [Downloadable!] (restricted)
  10. Bourguignon, F. & Browning, M. & Chiappori, P. A., 1995. "The Collective Approach to Household Behaviour," DELTA Working Papers 95-04, DELTA (Ecole normale supérieure).
  11. Behrman, Jere R & Deolalikar, Anil B, 1993. "The Intrahousehold Distribution of Market Labour Supply in Rural South India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(4), pages 409-20, November.
  12. Haurin, Donald R & Hendershott, Patric H & Kim, Dongwook, 1993. "The Impact of Real Rents and Wages on Household Formation," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 284-93, May. [Downloadable!] (restricted)
  13. Carlson, Marcia & Danziger, Sheldon, 1999. "Cohabitation and the Measurement of Child Poverty," Review of Income and Wealth, Blackwell Publishing, vol. 45(2), pages 179-91, June.
  14. Jeremy Greenwood & Nezih Guner & and John Knowles, 1999. "More on marriage, fertility, and the distribution of income," Working Paper 9904, Federal Reserve Bank of Cleveland. [Downloadable!]
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  15. Maria Cancian & Deborah Reed, 1998. "Assessing The Effects Of Wives' Earnings On Family Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 73-79, February. [Downloadable!] (restricted)
  16. Fernández, Raquel & Rogerson, Richard, 2000. "Sorting and Long-Run Inequality," CEPR Discussion Papers 2352, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  17. 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. [Downloadable!] (restricted)
  18. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January. [Downloadable!] (restricted)
  19. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Leonardo Gasparini & Francisco Haimovich & Hernán Winkler, 2006. "Distribución del Ingreso en América Latina: Explorando las Diferencias entre Países," Working Papers 0034, CEDLAS, Universidad Nacional de La Plata. [Downloadable!]
  2. T. H. Gindling, 2003. "La Desigualdad En América Central Durante Los Años Noventa," UMBC Economics Department Working Papers 03-109, UMBC Department of Economics. [Downloadable!]
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