Source decomposition of changes in income inequality: the integral-based approach and its approximation by the chained Shapley-value approach

Okamoto, Masato

doi:10.1007/s10888-010-9137-0

Cited by 10 publications

(7 citation statements)

References 13 publications

(45 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…7 Without in any special ordering see for example Okamoto (2011), Chernozhukov et al (2009), Firpo et al (2007, Yun (2006), Fields (2003, Juhn et al (1993) for the USA; Machado and Mata (2005) for Portugal; Paul (2004) for Australia; Celestin and Clovis (2012) for Cameroon; Fournier (2001) for Taiwan; Mookherjee and Shorrocks (1982) for the UK; Fiorio (2006) for Italy; Morduch and Sicular (2002) for China; Fräßdorf et al (2011) for a comparison of the UK, Germany and the USA; Bourguignon et al (2008) for a comparison of Brazil and the USA; Gunatilaka and Chotikapanich (2009) for Sri Lanka; and López-Feldman et al (2006) for Mexico.…”

mentioning

confidence: 99%

Factor decomposition of the wealth distribution in the euro area

Lindner

2015

Empirica

View full text Add to dashboard Cite

Economic policy often targets specific components of the household balance sheet such as policies supporting the financing of real estate or setting the interest rate. To understand the potential impact of these policy measures on the overall distribution of wealth, this paper investigates the link between components of wealth and the overall distribution of wealth, using factor decomposition methods. Applying methods from the literature and a new decomposition approach based on the recentered influence function, it uses the newly published data provided by the Eurosystem Household Finance and Consumption Survey. Specifically, the paper studies the (marginal) contributions of and the elasticity with respect to components of the household's balance sheet for the euro area as a whole as well as for 15 euro area countries. We find some factors (such as wealth held in households' main residence) to contribute a higher proportion to inequality while others (such as risky financial assets) display only a relatively weak contribution. In addition, elasticities reveal a diverging impact of different components on the wealth distribution. Furthermore, the relative contribution and the point elasticities of the components of total wealth differ across euro area countries, indicating regionally distinctive impacts of policy measures.

show abstract

mentioning

confidence: 99%

Factor decomposition of the wealth distribution in the euro area

Lindner

2015

Empirica

View full text Add to dashboard Cite

show abstract

“…In this paper we examine the contribution of each informality/sector combination on wages and on changes in wage inequality during two sample periods 1998-2006 and 2006-2012. The paper applies the recentered influence function (RIF) regression proposed by Firpo, Fortin, and Lemieux (2009, 2011 to estimate the impact of the explanatory variables at different quantiles on the unconditional (marginal) distribution of log hourly wages. In addition, it utilizes inequality decomposition reweighting approach as developed by (DiNardo, Fortin, and Lemieux 1996) and Firpo, Fortin, and Lemieux (2007a) Lemieux 2011, 2018).…”

Section: Methodsmentioning

confidence: 99%

The informalization of the Egyptian economy (1998–2012): a driver of growing wage inequality

El-Haddad

Gadallah

2020

Applied Economics

View full text Add to dashboard Cite

We run recentered influence function (RIF) regressions, using Firpo et al. (2007) distributional approach to identify each control variable's contribution on the decomposition of wage changes. Using the Egyptian Labour Market Surveys 1998-2012 for waged men we find that wage changes between 1998 and 2012 mainly resulted in increased inequality. The richer percentiles have persistently enjoyed disproportionately larger positive changes in real hourly wages. Whilst increasing in all three wage gaps, inequality increased the most between the top and bottom deciles (90-10 gap), i.e. between the lowest and highest wage earners. This increase in inequality is primarily driven by the unexplained wage structure effect. The distinct labour market segments are foremost responsible for the increased inequality trend. Private sector informality is the largest contributor to increased inequality. The sector does not adhere to a minimum wage, and being unregulated it has responded dramatically to the severe competitive pressures caused by the departing middle classes of the public sector. It suppressed mid and low-end wages resulting in sharp wage gaps at the tails. Public sector wage setting dynamics and the direction of labour movements since liberalization cause the sector to contribute more to wage inequality than does its formal private counterpart.

show abstract

“…By letting and , we have ( ) ( ) , proving the claim. 6 In the context of source decomposition of changes in inequality, Okamoto (2011) proposes an integration-based approach to justify Shapley-type decomposition. 7 All the proofs are provided in Appendix B.…”

Section: New Methods Of Dynamic Poverty Decompositionmentioning

confidence: 99%

Dynamic Poverty Decomposition Analysis: An Application to the Philippines

Fujii

2017

World Development

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The author greatly benefited from useful and encouraging comments from Masahiko Aoki, Satya R. Chakravarty, Koichi Hamada, Almas Heshmati, Seiro Ito, Weerachart Kilenthong, Takashi Kurosaki, Esfandiar Maasoumi, Yasuyuki Sawada, Abu Shonchoy, Jacques Silber, Zhang Jipeng, and participants of the 2012 Asian Meeting of the Econometric Society, the 9th Annual Conference on Economic Growth and Development, and research seminars and workshops held at the Asian Development Bank Institute (ADBI), IDE-JETRO, Nanyang Technological University, Singapore Management University, and Sogang University. Xu Sijia provided research assistance.The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, the ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan AbstractIn this paper, we propose a new method of poverty decomposition. Our method remedies the shortcomings of existing methods and has some desirable properties such as timereversion consistency and subperiod additivity. It integrates the existing methods of growthredistribution decomposition and sector-based decomposition, because it allows us to decompose the change in poverty into growth and redistribution components for each group (e.g., regions or sectors) in the economy. We extend our method to include six components and provide an empirical application to the Philippines for the period 1985-2009. JEL Classification: I32, O10ADBI Working Paper 466 Fujii

show abstract

Source decomposition of changes in income inequality: the integral-based approach and its approximation by the chained Shapley-value approach

Abstract: Decomposition by factor components, Family structure, Income distribution,

Cited by 10 publications

References 13 publications

Factor decomposition of the wealth distribution in the euro area

Factor decomposition of the wealth distribution in the euro area

The informalization of the Egyptian economy (1998–2012): a driver of growing wage inequality

Dynamic Poverty Decomposition Analysis: An Application to the Philippines

Contact Info

Product

Resources

About