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RIF regression via sensitivity curves

Author

Listed:
  • Javier Alejo

    (IECON/Universidad de la República)

  • Gabriel Montes-Rojas

    (IIEP-BAIRES/Universidad de Buenos Aires/CONICET)

  • Walter Sosa Escudero

    (Universidad de San Andrés/CONICET)

Abstract

This paper proposes an empirical method to implement the recentered influence function (RIF) regression of Firpo, Fortin and Lemieux (2009), a relevant method to study the effect of covariates on many statistics beyond the mean. In practically relevant situations where the influence function is not available or difficult to compute, we suggest to use the sensitivity curve (Tukey, 1977). We illustrate the proposal with an application to the polarization index of Duclos, Esteban and Ray (2004).

Suggested Citation

  • Javier Alejo & Gabriel Montes-Rojas & Walter Sosa Escudero, 2021. "RIF regression via sensitivity curves," Working Papers 41, Red Nacional de Investigadores en Economía (RedNIE).
    • Handle: RePEc:aoz:wpaper:41
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    References listed on IDEAS

    as
    1. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    2. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November.
    3. Frank A. Cowell & Emmanuel Flachaire, 2014. "Statistical Methods for Distributional Analysis," Working Papers halshs-01115996, HAL.
    4. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    5. James B. Davies & Nicole M. Fortin & Thomas Lemieux, 2017. "Wealth inequality: Theory, measurement and decomposition," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1224-1261, December.
    6. Nicola Orsini & Sander Greenland, 2011. "A procedure to tabulate and plot results after flexible modeling of a quantitative covariate," Stata Journal, StataCorp LP, vol. 11(1), pages 1-29, March.
    7. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
    8. Roger B. Newson, 2012. "Sensible parameters for univariate and multivariate splines," Stata Journal, StataCorp LP, vol. 12(3), pages 479-504, September.
    9. Leonardo Gasparini & Matias Horenstein & Ezequiel Molina & Sergio Olivieri, 2008. "Income Polarization in Latin America: Patterns and Links with Institutions and Conflict," Oxford Development Studies, Taylor & Francis Journals, vol. 36(4), pages 461-484.
    10. Sergio P. Firpo & Nicole M. Fortin & Thomas Lemieux, 2018. "Decomposing Wage Distributions Using Recentered Influence Function Regressions," Econometrics, MDPI, vol. 6(2), pages 1-40, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    recentered influence function sensitivity polarization;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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