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How Much Inequality Can we Explain? A Methodology and an Application to the United States
Frank A. Cowell and Stephen P. Jenkins
The Economic Journal
Vol. 105, No. 429 (Mar., 1995), pp. 421-430
Stable URL: http://www.jstor.org/stable/2235501
Page Count: 10
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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.
The Economic Journal © 1995 Royal Economic Society