How much inequality can we explain? A methodology and an application to the USA

Cowell, F.ORCID logo & Jenkins, S. P. (1994). How much inequality can we explain? A methodology and an application to the USA. (DARP 7). Suntory and Toyota International Centres for Economics and Related Disciplines.
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We develop two simple measures of how much inequality is explained by individual population characteristics or groups of characteristics, analogous to R2 in regression analysis. We investigate the measures' empirical implementation using several alternative theoretically consistent approaches to inequality decomposition. Results are illustrated using US PSID income data.
Item Type Working paper
Copyright holders © 1994 Frank A. Cowell and Stephen P. Jenkins
Departments LSE > Academic Departments > Economics
LSE > Research Centres > STICERD
LSE > Research Centres > Centre for Analysis of Social Exclusion
Date Deposited 27 Apr 2007
URI https://researchonline.lse.ac.uk/id/eprint/2233

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