Oaxaca-Blinder decomposition of changes in means and inequality: A simultaneous approach

In this paper, we show that a decomposition of changes in inequality, with the mean log deviation index, can be obtained directly from the Oaxaca-Blinder decompositions of changes in means of incomes and log-incomes. It allows practitioners to conduct simultaneously empirical analyses to explain which factors account for changes in means and in inequality indices between two distributions with strictly positive values.

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SPIRE - Sciences Po Institutional REpository
Published
2024-12-01
Primary Topic
Income, Poverty, and Inequality
Type
article
Field-Weighted Citation Impact
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article

Oaxaca-Blinder decomposition of changes in means and inequality: A simultaneous approach

Arthur Charpentier, Emmanuel Flachaire
SPIRE - Sciences Po Institutional REpository
Income, Poverty, and Inequality
article

Oaxaca-Blinder decomposition of changes in means and inequality: A simultaneous approach

Arthur Charpentier, Emmanuel Flachaire
article en

Abstract

In this paper, we show that a decomposition of changes in inequality, with the mean log deviation index, can be obtained directly from the Oaxaca-Blinder decompositions of changes in means of incomes and log-incomes. It allows practitioners to conduct simultaneously empirical analyses to explain which factors account for changes in means and in inequality indices between two distributions with strictly positive values.

SPIRE - Sciences Po Institutional REpository
Université du Québec à Montréal (CA), Aix-Marseille Université (FR)
Aix-Marseille Université, Agence Nationale de la Recherche, Natural Sciences and Engineering Research Council of Canada
Openalex Percentile: Top 63%
Income, Poverty, and Inequality
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