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Beyond Oaxaca-Blinder : accounting for differences in household income distributions across countries Author info | Abstract | Publisher info | Download info | Related research | Statistics Bourguignon, Francois
Ferreira, Francisco H. G.
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The authors develop a microeconometric method to account for differences across distributions of household income. Going beyond the determination of earnings in labor markets, they also estimate statistical models for occupational choice and for conditional distributions of education, fertility, and nonlabor incomes. The authors import combinations of estimated parameters from these models to simulate counterfactual income distributions. This allows them to decompose differences between functionals of two income distributions (such as inequality or poverty measures) into shares because of differences in the structure of labor market returns (price effects), differences in the occupational structure, and differences in the underlying distribution of assets (endowment effects). The authors apply the method to the differences between the Brazilian income distribution and those of Mexico and the United States, and find that most of Brazil's excess income inequality is due to underlying inequalities in the distribution of two key endowments: access to education and to sources of nonlabor income, mainly pensions.
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number
2828.
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Date of creation: 30 Apr 2002Date of revision:
Handle: RePEc:wbk:wbrwps:2828Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433 Email: Web page: http://www.worldbank.org/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Roula I. Yazigi).
Keywords: Services&Transfers to Poor ; Environmental Economics&Policies ; Poverty Impact Evaluation ; Economic Theory&Research ; Health Economics&Finance ; Inequality ; Economic Theory&Research ; Rural Poverty Reduction ; Safety Nets and Transfers ; Services&Transfers to Poor ; Other versions of this item:
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.)François Bourguignon & Francisco Ferreira & Phillippe Leite, 2008.
"Beyond Oaxaca–Blinder: Accounting for differences in household income distributions ,"
Journal of Economic Inequality ,
Springer, vol. 6(2), pages 117-148, June.
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Hugo Nopo, 2004.
"Matching as a Tool to Decompose Wage Gaps ,"
Middlebury College Working Paper Series
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"Matching as a Tool to Decompose Wage Gaps ,"
The Review of Economics and Statistics ,
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4591, The World Bank.
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Arcand Jean-Louis & Béatrice d'Hombres, 2005.
"Racial Discrimination in the Brazilian Labour Market: Wage, Employment and Segregation Effects ,"
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Béatrice D'HOMBRES & Jean-Louis ARCAND, 2003.
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Revista Brasileira de Economia ,
Graduate School of Economics, Getulio Vargas Foundation (Brazil), vol. 57(1), April.
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Other versions: Marcelo de Paiva Abreu, 2003.
"The political economy of economic integration in the Americas: Latin American interests ,"
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Daniele Checchi & Cecilia Garcia-Peñalosa, 2005.
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CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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Daniele Checchi & Cecilia García Peñalosa, 2005.
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1009, Universitá degli Studi di Milano.
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Brigitte Dormont & Michel Grignon & Hélène Huber, 2006.
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Francisco H. G. Ferreira & Phillippe George Leite, 2002.
"Educational expansion and income distribution. A Micro-Simulation for Ceará ,"
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456, Department of Economics PUC-Rio (Brazil).
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Wendy Cunningham & Joyce P. Jacobsen, 2003.
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Wesleyan Economics Working Papers
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