Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions
This paper develops a method to decompose differences across distributions of household income, based on counterfactual distributions that 'lie between' the actually observed distributions. Our approach decomposes differences between any two income distributions (or functionals such as ine...
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okr-10986-54382021-04-23T14:02:22Z Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. Personal Income, Wealth, and Their Distributions D310 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 This paper develops a method to decompose differences across distributions of household income, based on counterfactual distributions that 'lie between' the actually observed distributions. Our approach decomposes differences between any two income distributions (or functionals such as inequality or poverty measures) into shares due to price effects; occupational structure effects; and endowment effects. Comparing the household income distributions of the USA and Brazil in 1999, we find that most of Brazil's excess inequality (of 13 Gini points) is accounted for by underlying inequalities in the distributions of education and of non-labor income, notably pensions (between four and six Gini points each). Steeper returns to education in Brazil also make an important contribution (of two to five points). Differences in occupational structure and in racial and demographic composition are much less important. 2012-03-30T07:32:49Z 2012-03-30T07:32:49Z 2008 Journal Article Journal of Economic Inequality 15691721 http://hdl.handle.net/10986/5438 EN CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Publications & Research :: Journal Article Publications & Research Brazil |
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Digital Repository |
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Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
EN |
topic |
Personal Income, Wealth, and Their Distributions D310 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 |
spellingShingle |
Personal Income, Wealth, and Their Distributions D310 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions |
geographic_facet |
Brazil |
description |
This paper develops a method to decompose differences across distributions of household income, based on counterfactual distributions that 'lie between' the actually observed distributions. Our approach decomposes differences between any two income distributions (or functionals such as inequality or poverty measures) into shares due to price effects; occupational structure effects; and endowment effects. Comparing the household income distributions of the USA and Brazil in 1999, we find that most of Brazil's excess inequality (of 13 Gini points) is accounted for by underlying inequalities in the distributions of education and of non-labor income, notably pensions (between four and six Gini points each). Steeper returns to education in Brazil also make an important contribution (of two to five points). Differences in occupational structure and in racial and demographic composition are much less important. |
format |
Journal Article |
author |
Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. |
author_facet |
Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. |
author_sort |
Bourguignon, Francois |
title |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions |
title_short |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions |
title_full |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions |
title_fullStr |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions |
title_full_unstemmed |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions |
title_sort |
beyond oaxaca-blinder: accounting for differences in household income distributions |
publishDate |
2012 |
url |
http://hdl.handle.net/10986/5438 |
_version_ |
1764395051375394816 |