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How much inequality can we explain? A methodology and an application to the USA

By Frank Cowell and Stephen P Jenkins

Abstract

We develop two simple measures of how much inequality is explained by individual population characteristics or groups of characteristics, analogous to R2 in regression analysis. We investigate the measures' empirical implementation using several alternative theoretically consistent approaches to inequality decomposition. Results are illustrated using US PSID income data

Topics: HN Social history and conditions. Social problems. Social reform, HB Economic Theory
Publisher: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Year: 1994
OAI identifier: oai:eprints.lse.ac.uk:2233
Provided by: LSE Research Online
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