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Inequality Decompositions - A Reconciliation

Econpubblica Working Paper No. 133

35 Pages Posted: 5 Feb 2009

See all articles by Frank Cowell

Frank Cowell

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)

Carlo V. Fiorio

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM)

Date Written: October 5, 2008

Abstract

We show how classic source-decomposition and subgroup-decomposition methods can be reconciled with regression methodology used in recent literature. We also highlight some pitfalls that arise from uncritical use of the regression approach. Examples are provided using the LIS database.

Keywords: inequality, decomposition

JEL Classification: D63

Suggested Citation

Cowell, Frank A. and Fiorio, Carlo V., Inequality Decompositions - A Reconciliation (October 5, 2008). Econpubblica Working Paper No. 133, Available at SSRN: https://ssrn.com/abstract=1338044 or http://dx.doi.org/10.2139/ssrn.1338044

Frank A. Cowell (Contact Author)

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 (0)171-955 7277 (Phone)
+44 (0)171-242 2357 (Fax)

Carlo V. Fiorio

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM) ( email )

Via Conservatorio, 7
Milan, 20122
Italy

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