A decomposition method to evaluate the `paradox of progress' with evidence for Argentina

Javier Alejo, Leonardo Gasparini, Gabriel Montes-Rojas () and Walter Sosa-Escudero
Authors registered in the RePEc Author Service: Walter Sosa Escudero ()

Papers from arXiv.org

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 its returns, as captured by quantile regressions. We propose a joint least-squares and quantile regression statistical framework to derive a decomposition in order to evaluate the relative contribution of each explanation. The estimators are based on the `functional derivative' approach. We apply the proposed decomposition strategy to the case of Argentina 1992 to 2015.

Date: 2021-12
New Economics Papers: this item is included in nep-lam, nep-lma and nep-ltv
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http://arxiv.org/pdf/2112.03836 Latest version (application/pdf)

Related works:
Journal Article: A decomposition method to evaluate the ‘paradox of progress’, with evidence for Argentina (2024)
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)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2112.03836

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