Regression-based inequality decomposition

pitfalls and a solution procedure by Wan,Guang Hua.

Publisher: United Nations University, World Institute for Development Economic Research in Helsinki

Written in English
Published: Pages: 11 Downloads: 42
Share This

Edition Notes

StatementGuang Hua Wan.
SeriesWIDER discussion paper -- no. 2002/101.
The Physical Object
Pagination11 p. :
Number of Pages11
ID Numbers
Open LibraryOL19593499M
ISBN 109291903280

Limanli, Ömer. Accounting for Income Inequality in Turkey: Regression Based Decomposition Approach. Journal of Academic Researches and Studies 9: – [Google Scholar] Lippmann, Stephen, Amy Davis, and Howard E. Aldrich. Entrepreneurship and inequality. Research in the Sociology of Work 3– [Google Scholar]. This paper attempts to explain wealth-based inequalities in child mortality and malnutrition using a regression-based decomposition approach. Data for the analysis come from the /93, /99, and /06 Indian National Family Health Surveys. Inequalities in child health are measured using the concentration index. The regression based inequality decomposition has an advantage over other statistical tools for measuring socio-economic inequality in obstetric morbidity prevalence. It acts as multi-stage control with mean, marginal effect and CI which takes care of sample distribution along with controlling the effect of other determinants in regression Conventional decompositions, by factor components or by population subgroups, provide only limited information on the determinants of income inequality. This paper represents an early attempt to apply the regression‐based decomposition framework to the study of inequality accounting in rural China, using household‐level data.

A range of different applications of the regression-based income inequality decomposition literature exist (Yuko et al., ; and Kimhi, ). Wan (; ), however, noted that most regression-based income inequality decompositions usually ignored or . empirical results of the regression based inequality decomposition. Section 5 discusses the results obtained from decomposition analysis. Finally, section 6 highlights major findings and offers policy prescriptions. II. Select Review of Literature In the context of India, there is a vast body of literature that measures poverty and inequality. The purpose is to ascertain where inequality in household consumption expenditure is coming from. Second, the study employs regression-based inequality decomposition to ascertain the determinants of inequality in food and nonfood expenditure using household demographic and socioeconomic characteristics as covariates. A log–linear equation was constructed to estimate the impact of macro and micro factors on property income. On this basis, the regression-based inequality decomposition method was adopted to identify the contribution of financial instruments and financial development to property income inequality .

Literature on inequality decomposition points to a wide regional variation in both the components and effects of income inequality. This paper aims to focus on trends in Oregon counties as part of the common approach to study inequality decomposition on a localized basis.   Regression Based Inequality Decomposition 09 Sep , Hello, I am running the following command for my analysis on inequality Decomposition to know the contribution of each independent variables. Code: ineqrbd logmrp ion age tion expedu, i2 stats. He is particularly noted for pioneering work in the development of regression-based decomposition techniques for inequality and poverty accounting. He has many academic papers published in peer reviewed journals. Growing inequality is one important problem for a developing country, and Indonesia is no exception. Narrowing the gap between those at the top and the bottom of income distribution has become one of the government’s main concerns. To achieve this goal, the sources of income inequality must be identified appropriately. Given the availability of household level data in Indonesia (Indonesia.

Regression-based inequality decomposition by Wan,Guang Hua. Download PDF EPUB FB2

A particular advantage of the regression-based decomposition is that it enables identification as well as quantification of root causes or determinants of inequality. The number of determinants can be arbitrary; even their proxies could be used.

This is not possible with any of the conventional decomposition methods. This paper explores pitfalls in regression-based inequality decompositions. A simple procedure is developed for rectifying these pitfalls. The procedure does not impose any restrictions on the underlying regression model and it can be applied to any inequCited by: This paper explores pitfalls in regression-based inequality decompositions.

A simple procedure is developed for rectifying these pitfalls. The procedure does not impose any restrictions on the underlying regression model and it can be applied to any inequality measure(s). Once combined with conventional decomposition methods or the Shapley value approach of Shorrocks (), what is being.

using the decomposition rule (8) corresponding to the Gini index of inequality. Morduch and Sicular () applied these same decomposition rules to income data from rural China, using Regression-based inequality decomposition book regression-based procedure (7).

They also concluded that the decomposition based on the Gini inequality index produced several counter-intuitive results. This talk discusses ineqrbd, a program for OLS regression-based decomposition suggested by G.S. Fields (“Accounting for Income Inequality and Its Change: A New Method, with Application to the.

Inequality Decomposition – A Reconciliation We Regression-based inequality decomposition book regression-based methods which are commonly used in empirical applications in various –elds of economics. The paper is organised as follows.

Section 2 o⁄ers an overview of the de-composition literature. Our basic model is developed in section 3 and this is. Abstract This paper presents a new regression‐based decomposition of socioeconomic inequality of health that is more direct than other approaches.

The method can be applied to both rank‐dependent. Example: wage inequality ineqrbd: Regression-based inequality decomposition, following Fields () Carlo V.

Fiorio, University of Milan & Stephen P. Jenkins, ISER, University of Essex UKSUG - 10 September C.V. Fiorio & S.P. Jenkins The regression-based inequality decomposition by income sources and confidence intervals for disaggregated contributions to the inequality index is discussed in Section 7.

The transitory and permanent components of shocks to the earnings are distinguished in Section 8. Regression-based approaches to inequality decomposition are appealing because they overcome many of the limitations of standard decomposition by groups. For example, continuous variables are permissible, and it is possible to control for endoge- neity.

Regression based decomposition unravels which factors were the main drivers in the rise in EF per capita inequality and to what extent. 5In this work, inequality is measured by the Variance of Logarithms mainly because this index is methodologically linked to the Regression-Based Inequality Decomposition proposed by Fields ().

methodologies, the regression-based method gives the opportunity of quantifying the contribution to the inequality of a set of factors, while taking the correlations among them into account. In this framework, two regression-based decomposition methodologies are used: the Fields method and the Shapley value approach, with the aim of measuring the.

Regression-based approach to income inequality decomposition in rural and urban Nigeria. Oyekale; A. Adeoti and T.

Oyekale. Year of publication: Sources of income inequality in Nigeria: decomposition approaches. Oyekale, A. S., () Income redistribution, growth and poverty dynamics during the period of economic reforms in. Within the literature on inequality, there exist a large number of decomposition methodologies, each with their own advantages and limitations.

Cowell and Fiorio () provide a review of such decompositions, categorising methodologies into ‘a priori approaches’ and ‘regression models’. To deal with the omitted variable problem, we propose an instrumental variable quantile regression-based decomposition method.

Our empirical analysis using CHNS data finds that the composition effect explains at least 80% of the income difference at any quantile, and it explains all the income difference at the top four deciles.

regression-based method of Fields () and Yun () to decompose changes in inequality by various characteristics which we expect to influence income (such as age, education, sex, and so on), and we investigate specific characteristics further by decomposing inequality by subgroups defined by these characteristics following Shorrocks ().

This studies focusing on investigating the determinant of inequality in Ethiopia by using the raw data collected from central Stastical authority based on the regression decomposition of field’s methodology.

Authors This paper investigates the impacts of financial development, urbanization, and globalization on income inequality in China by applying a regression-based inequality decomposition approach to panel data on Chinese provinces.

A general approach to regression-based decomposition was proposed by Morduch and Sicular () who use the formula given by Theorem 1 of Shorrocks () for decomposing an inequality measure say I(Y) where Y denotes the distribution of. the Sources of Income Inequality in Indonesia: regression-Based Inequality Decomposition Eko Wicaksono, Hidayat Amir, and Anda Nugroho Intragenerational and Intergenerational Mobility in Viet Nam Nguyen Tran Lam and Nguyen Viet Cuong Foreign Direct Investment and Wage Inequality: Evidence from the People’s republic of.

Corpus ID: Unconditional quantile regression-based decomposition method: evidence from rural-urban inequality in Senegal ∗ @inproceedings{NdoyeUnconditionalQR, title={Unconditional quantile regression-based decomposition method: evidence from rural-urban inequality in Senegal ∗}, author={Abdoul Aziz Junior Ndoye}, year={} }.

An Unconditional Quantile Regression Based Decomposition of Spatial Welfare Inequalities in Ghana. The Journal of Development Studies: Vol. 54, No. 3, pp. The question is whether promoting education is such a policy. In this paper, the determinants of income inequality in Israel are analyzed using regression-based inequality decomposition techniques, focusing on the role of years of schooling and type of education.

Using urban household survey data from theand waves of the China Household Income Project, in this article, we decompose earnings inequality in urban China by using the recently developed regression-based decomposition methods.

This paper decomposes income inequality using the regression-based decomposition technique. The paper analyses the role of education, experience, employment status, industry and their interactions in accounting for differences in income and its inequality in India over the past three decades.

The results clearly show that education is the most dominant factor contributing to inequality in [ ]. Part of the Economic Studies in Inequality, Social Exclusion and Well-Being book series (EIAP) Abstract This study investigates the determinants of income diversification for non-farm activities using a two-part model and a breakdown of income inequality using Gini and regression-based inequality decompositions using data from the Ethiopian.

Using a new approach based on the Theil index and the index decomposition analysis (IDA) technique, this paper examines global per capita consumption-based emission inequality in – The sources and determinants of both the status and evolution of.

Then, we will briefly explain the regression-based-inequality decomposition method used in the statistical analysis. The fourth section reports the results of an empirical analysis, identifying major contributing factors to income inequality and wealth inequality. This study aims to investigate the sources of income inequality in rural China.

The regression-based decomposition approach is employed to measure the relative contribution of each determinant to net income of rural residents in China. The analysis is based on a unique database of financial development compiled at the county level.

However, the study of income inequality has a long history. Several of the key concepts of income inequality, such as the Gini coefficient, were developed over years ago.

In order to understand the source of income inequality, economists started to develop methods for regression-based decomposition of inequality in the s. Details. This function uses a multivariate regression-based decomposition method. Multiple variables can be added to the function in order to calculate the contribution of each individual variable (including the residual) to the inequality.

We combine the regression-based inequality decomposition method and the three-step mediating effect test to analyze the transmission of income inequality from initial socioeconomic differences to income inequality in old age.

Our study is based on a panel of over 4, old households from the China Health and Nutrition Survey during Generalized linear model and regression based decomposition of income inequality has been used for regression purpose and to see factors contribution to income inequality respectively.

The result of the analysis shows that education level of households, Age, Public sector and informal private worker employees have significant and positive Author: Helen Retta.