Oaxaca-Blinder decomposition of changes in means and inequality: A simultaneous approach

Arthur Charpentier and Emmanuel Flachaire
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Arthur Charpentier: UQAM - Université du Québec à Montréal = University of Québec in Montréal
Emmanuel Flachaire: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, AMU - Aix Marseille Université

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Abstract: In this paper, we show that a decomposition of changes in inequality, with the mean log deviation index, can be obtained directly from the Oaxaca-Blinder decompositions of changes in means of incomes and log-incomes. It allows practitioners to conduct simultaneously empirical analyses to explain which factors account for changes in means and in inequality indices between two distributions with strictly positive values.

Keywords: inequality Oaxaca-Blinder decomposition MLD index; inequality; Oaxaca-Blinder decomposition; MLD index (search for similar items in EconPapers)
Date: 2024-12
Note: View the original document on HAL open archive server: https://hal.science/hal-04830576v1
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Published in Economics Bulletin, 2024, 44 (1)

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