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

Arthur Charpentier () and Emmanuel Flachaire ()
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Arthur Charpentier: UQAM
Emmanuel Flachaire: Aix-Marseille University, AMSE

Economics Bulletin, 2024, vol. 44, issue 1, 308 - 320

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 (search for similar items in EconPapers)
JEL-codes: C1 Y1 (search for similar items in EconPapers)
Date: 2024-03-30
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-23-00234

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