Inequality Decompositions ?A Reconciliation

Frank Alan Cowell () and Carlo V. Fiorio ()

No 117, Working Papers from ECINEQ, Society for the Study of Economic Inequality

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.

Keywords: Inequality; decomposition. (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm and nep-ltv
Date: Written

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Persistent link: http://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2009-117

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