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Inequality Decompositions ?A Reconciliation

Author

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  • Frank A. Cowell

    (London School of Economics and STICERD)

  • Carlo V. Fiorio

    (University of Milan and Econpubblica)

Abstract

We show how classic source-decomposition and subgroup-decomposition methods can be reconciled with regression methodology used in the recent literature. 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.

Suggested Citation

  • Frank A. Cowell & Carlo V. Fiorio, 2009. "Inequality Decompositions ?A Reconciliation," Working Papers 117, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2009-117
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-117.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Inequality; decomposition.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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