Further results on the regression-based approach to inequality decomposition with evidence from India
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Organización Internacional del Trabajo (OIT)
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| Natura: | Artículo científico |
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International Labour Organization
01/05/2015
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| _version_ | 1874525222589169665 |
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| author | Uma Rani Maurizio Bigotta Jaya Krishnakumar |
| author_facet | Uma Rani Maurizio Bigotta Jaya Krishnakumar Uma Rani Maurizio Bigotta Jaya Krishnakumar |
| contents | Further results on the regression-based approach to inequality decomposition with evidence from India Uma Rani Maurizio Bigotta Jaya Krishnakumar The paper revisits regression-based inequality decomposition, derives further theoretical results on the factor shares and applies them in an empirical setting. Noting that the approach based on Shorrocks and Fields is not directly applicable to an important welfare-based inequality index, namely Atkinson's inequality index, we generalise it to derive shares for this index. We also derive the asymptotic distribution of all share estimators for obtaining their standard errors necessary for drawing inference. Finally, we use our theoretical results to examine the major factors that contribute to income inequality in India. Our results show that education and household size are the two most dominant factors contributing to income inequality in both rural and urban areas, followed by employment status and regional differences. 10.1007/s00181-014-0819-5 DOI https://doi.org/10.1007/s00181-014-0819-5 publication.journalArticle |
| format | Artículo científico |
| id | ilo_995268293002676 |
| institution | Organización Internacional del Trabajo (OIT) |
| publishDate | 01/05/2015 |
| publisher | International Labour Organization |
| spellingShingle | Further results on the regression-based approach to inequality decomposition with evidence from India Uma Rani Maurizio Bigotta Jaya Krishnakumar Further results on the regression-based approach to inequality decomposition with evidence from India Uma Rani Maurizio Bigotta Jaya Krishnakumar The paper revisits regression-based inequality decomposition, derives further theoretical results on the factor shares and applies them in an empirical setting. Noting that the approach based on Shorrocks and Fields is not directly applicable to an important welfare-based inequality index, namely Atkinson's inequality index, we generalise it to derive shares for this index. We also derive the asymptotic distribution of all share estimators for obtaining their standard errors necessary for drawing inference. Finally, we use our theoretical results to examine the major factors that contribute to income inequality in India. Our results show that education and household size are the two most dominant factors contributing to income inequality in both rural and urban areas, followed by employment status and regional differences. 10.1007/s00181-014-0819-5 DOI https://doi.org/10.1007/s00181-014-0819-5 publication.journalArticle |
| title | Further results on the regression-based approach to inequality decomposition with evidence from India |
| url | https://researchrepository.ilo.org/esploro/outputs/journalArticle/Further-results-on-the-regression-based-approach/995268293002676 |