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Male Income, Female Income, and Household Income Inequality in Israel: A Decomposition Analysis

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  • Kimhi, Ayal

Abstract

Differentiating between the sensitivity of income inequality to male income and female income, and decomposing inequality by income determinants, we find that total income inequality is less sensitive to female income variability or the level of female income than to male income variability or the level of male income. Uniform increases in education reduce income inequality, with female education having a larger effect than male education. The fraction of minority populations has a positive effect on inequality, but this operates mostly through female income. All this suggests that female income is the most adequate target for inequality-reducing policy, and that within-household gender equality is good for reducing income inequality among households.

Suggested Citation

  • Kimhi, Ayal, 2008. "Male Income, Female Income, and Household Income Inequality in Israel: A Decomposition Analysis," Discussion Papers 46293, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  • Handle: RePEc:ags:huaedp:46293
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    References listed on IDEAS

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    1. Anthony F. Shorrocks, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 311-326.
    2. Reed, Deborah & Cancian, Maria, 2001. "Sources of Inequality: Measuring the Contributions of Income Sources to Rising Family Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 321-333, September.
    3. John Pencavel, 2006. "A Life Cycle Perspective on Changes in Earnings Inequality among Married Men and Women," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 232-242, May.
    4. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    5. Iulie Aslaksen & Tom Wennemo & Rolf Aaberge, 2005. "'Birds of a Feather Flock Together': The Impact of Choice of Spouse on Family Labor Income Inequality," LABOUR, CEIS, vol. 19(3), pages 491-515, September.
    6. Amin, Shahina & DaVanzo, Julie, 2004. "The impact of wives' earnings on earnings inequality among married-couple households in Malaysia," Journal of Asian Economics, Elsevier, vol. 15(1), pages 49-70, February.
    7. Yukiko Abe & Akiko S. Oishi, 2007. "The Role of Married Women's Labor Supply on Family Earnings Distribution in Japan," Journal of Income Distribution, Journal of Income Distribution, vol. 16(3-4), pages 110-127, September.
    8. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    9. Winegarden, C R, 1987. "Women's Labour Force Participation and the Distribution of Household Incomes: Evidence from Cross-national Data," Economica, London School of Economics and Political Science, vol. 54(214), pages 223-236, May.
    10. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
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    Cited by:

    1. Kimhi, Ayal, 2011. "Can Female Non-Farm Labor Income Reduce Income Inequality? Evidence from Rural Southern Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114756, European Association of Agricultural Economists.
    2. Ayal Kimhi & Moran Sandel, 2011. "Religious Schooling, Secular Schooling, and Household Income Inequality in Israel," Working Papers 29, AlmaLaurea Inter-University Consortium.

    More about this item

    Keywords

    Consumer/Household Economics;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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