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Inequality decompositions—a reconciliation

By Frank A. Cowell and Carlo V. Fiorio

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

Topics: DL Northern Europe. Scandinavia, E151 United States (General), HB Economic Theory, HV Social pathology. Social and public welfare. Criminology
Publisher: Springer
Year: 2011
DOI identifier: 10.1007/s10888-011-9176-1
OAI identifier: oai:eprints.lse.ac.uk:39700
Provided by: LSE Research Online
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