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Inequality decompositions—a reconciliation

  • Frank Cowell

    ()

  • Carlo Fiorio

    ()

We show how classic source-decomposition and subgroup-decomposition methodscan be reconciled with regression methodology used in the recent literature. We alsohighlight some pitfalls that arise from uncritical use of the regression approach. TheLIS database is used to compare the approaches using an analysis of the changingcontributions to inequality in the United States and Finland.

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File URL: http://hdl.handle.net/10.1007/s10888-011-9176-1
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Article provided by Springer in its journal The Journal of Economic Inequality.

Volume (Year): 9 (2011)
Issue (Month): 4 (December)
Pages: 509-528

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Handle: RePEc:kap:jecinq:v:9:y:2011:i:4:p:509-528
Contact details of provider: Web page: http://springerlink.metapress.com/link.asp?id=111137

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