Inequality Decompositions ?A Reconciliation
AbstractWe show how classic source-decomposition and subgroup-decomposition methods can be reconciled with regression methodology used in the recent literature. We also highlight some pitfalls that arise from uncritical use of the regression approach. The LIS database is used to compare the approaches using an analysis of the changing contributions to inequality in the United States and Finland.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 117.
Length: 34 pages
Date of creation: 2009
Date of revision:
Other versions of this item:
- Frank A Cowell & Carlo V. Fiorio, 2009. "Inequality Decomposition - A Reconciliation," STICERD - Distributional Analysis Research Programme Papers 100, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-10 (All new papers)
- NEP-ECM-2009-06-10 (Econometrics)
- NEP-LTV-2009-06-10 (Unemployment, Inequality & Poverty)
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