GINI DP 4: Inequality Decompositions

Frank Cowell () and Carlo Fiorio ()

GINI Discussion Papers from AIAS, Amsterdam Institute for Advanced Labour Studies

Abstract: We show how classic source-decomposition and subgroup-decomposition meth ods can be reconciled with regression methodology used in the recent liter ature. 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. JEL Classification: D6

Date: 2010-12
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