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Inequality Decompositions ?A Reconciliation

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  • Frank A. Cowell

    ()
    (London School of Economics and STICERD)

  • Carlo V. Fiorio

    (University of Milan and Econpubblica)

Abstract

We 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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File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-117.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 117.

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Length: 34 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2009-117

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Web page: http://www.ecineq.org
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Keywords: Inequality; decomposition.;

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Citations

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Cited by:
  1. ERREYGERS, Guido & KESSELS, Roselinde, 2013. "Regression-based decompositions of rank-dependent indicators of socioeconomic inequality of health," Working Papers 2013007, University of Antwerp, Faculty of Applied Economics.
  2. John Creedy & Nicolas Hérault, 2011. "Decomposing Inequality and Social Welfare Changes: The Use of Alternative Welfare Metrics," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2011n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Brewer, Mike & Wren-Lewis, Liam, 2012. "Accounting for changes in income inequality: decomposition analyses for Great Britain, 1968-2009," ISER Working Paper Series 2012-17, Institute for Social and Economic Research.
  4. repec:wii:bpaper:bowp:084 is not listed on IDEAS
  5. Stefan Huemer & Beatrice Scheubel & Florian Walch, 2013. "Measuring Institutional Competitiveness in Europe," CESifo Economic Studies, CESifo, CESifo, vol. 59(3), pages 576-608, September.
  6. Kimhi, Ayal, 2009. "Land Reform and Farm-Household Income Inequality: The Case of Georgia," Discussion Papers, Hebrew University of Jerusalem, Department of Agricultural Economics and Management 54159, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  7. Salverda, Wiemer & Checchi, Daniele, 2014. "Labour-Market Institutions and the Dispersion of Wage Earnings," IZA Discussion Papers 8220, Institute for the Study of Labor (IZA).
  8. Ayal Kimhi & Moran Sandel, 2011. "Religious Schooling, Secular Schooling, and Household Income Inequality in Israel," Working Papers, AlmaLaurea Inter-University Consortium 29, AlmaLaurea Inter-University Consortium.

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