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GINI DP 4: Inequality Decompositions

  • Frank Cowell

    ()

    (CASE, Londeon School of Economics)

  • Carlo V. Fiorio

    ()

    (Econpubblica, Room 3.B1 13, Bocconi University)

We show how classic source-decomposition and subgroup-decomposition meth ods can be reconciled with regression methodology used in the recent liter ature. 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. JEL Classification: D6

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Paper provided by AIAS, Amsterdam Institute for Advanced Labour Studies in its series GINI Discussion Papers with number 4.

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Date of creation: Dec 2010
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Handle: RePEc:aia:ginidp:4
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  26. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September.
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  28. Casilda Lasso de la Vega & Ana Urrutia, 2008. "The ‘Extended’ Atkinson family: The class of multiplicatively decomposable inequality measures, and some new graphical procedures for analysts," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(2), pages 211-225, June.
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