A decomposition method to evaluate the ‘paradox of progress’, with evidence for Argentina

Javier Alejo, Leonardo Gasparini, Gabriel Montes-Rojas () and Walter Sosa-Escudero ()
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Walter Sosa-Escudero: UdeSA and CONICET

The Journal of Economic Inequality, 2024, vol. 22, issue 2, No 10, 453-472

Abstract: Abstract The ‘paradox of progress’ is an empirical regularity that associates more education with larger income inequality. Two driving and competing factors behind this phenomenon are the convexity of the ‘Mincer equation’ (that links wages and education) and the heterogeneity in the returns to education, as captured by quantile regressions. We propose a joint least-squares and quantile regression statistical framework to derive a decomposition to evaluate the relative contribution of each explanation. We apply the proposed decomposition strategy to the case of Argentina 1992 to 2015.

Keywords: Paradox of progress; Quantile regression; Inequality; Returns to education; Argentina (search for similar items in EconPapers)
JEL-codes: C21 I24 J31 J46 O54 (search for similar items in EconPapers)
Date: 2024
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Working Paper: A decomposition method to evaluate the ‘paradox of progress’ with evidence for Argentina (2022)
Working Paper: A decomposition method to evaluate the "paradox of progress", with evidence for Argentina (2021)
Working Paper: A decomposition method to evaluate the `paradox of progress' with evidence for Argentina (2021)
Working Paper: A decomposition method to evaluate the 'paradox of progress' with evidence for Argentina (2021)
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DOI: 10.1007/s10888-023-09601-w

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