DETERMINANTS OF INCOME INEQUALITY IN BRAZIL: AN APPROACH BASED ON SHAPLEY VALUE DECOMPOSITION

Vladimir Faria dos Santos ()
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Vladimir Faria dos Santos: Universidade Federal Fluminense
Authors registered in the RePEc Author Service: Carlos Enrique Carrasco-Gutierrez

Revista de Economia Mackenzie (REM), 2023, vol. 20, issue 2, 13-37

Abstract: This study aimed to analyze the main determinants of individual income inequality in Brazil. For this, an earnings equation was estimated. We used a two-stage approach in order to control both for sample selection bias and endogeneity problems. After that, we used decompositions based on the Shapley value, a solution concept for cooperative games. The results show that education emerges as a most significant determinant of income inequality, no matter what inequality index was take.

Keywords: Income inequality; Shapley decomposition; education; game theory; regression. (search for similar items in EconPapers)
JEL-codes: I24 O15 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aft:journl:v:20:2:2023:jul:dec:p:13-37

DOI: 10.5935/1808-2785/rem.v20n2p.13-37

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