Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries
The authors develop a microeconometric method to account for differences across distributions of household income. Going beyond the determination of earnings in labor markets, they also estimate statistical models for occupational choice and for co...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/04/1769436/beyond-oaxaca-blinder-accounting-differences-household-income-distributions-across-countries http://hdl.handle.net/10986/14287 |
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okr-10986-142872021-04-23T14:03:20Z Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. HOUSEHOLD INCOME LABOR MARKETS OCCUPATIONAL CHOICE INCOME DISTRIBUTION OCCUPATIONAL STRUCTURE ENDOWMENTS PENSIONS INCOME INEQUALITIES ABSOLUTE POVERTY ABSOLUTE POVERTY LINE COUNTERFACTUAL COUNTRY REGRESSIONS CROSS-COUNTRY DIFFERENCES DATA SET DATA SETS DECOMPOSITION ANALYSIS DEMOGRAPHIC MAKE-UP DESCRIPTIVE STATISTICS DIFFERENCES IN INCOME DISTRIBUTION FUNCTION DISTRIBUTION FUNCTIONS ECONOMETRIC MODELS EMPIRICAL APPLICATION EXCHANGE RATES EXOGENOUS VARIABLES EXPLANATORY POWER FUNCTIONAL FORM FUNCTIONAL FORMS GDP GDP PER CAPITA GINI COEFFICIENT HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SIZE HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME DATA INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME SOURCES INCOME STUDY INCOMES INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES LABOR FORCE LABOR MARKET LABOR MARKETS MEAN INCOME MEAN INCOMES MEDIAN INCOME NORMAL DISTRIBUTION PER CAPITA INCOME PER CAPITA INCOMES PERSONAL INCOME POLICY RESEARCH POVERTY GAP POVERTY INCIDENCE POVERTY INDICES POVERTY LEVELS POVERTY MEASURE POVERTY MEASURES PUBLIC TRANSFERS RELATIVE IMPORTANCE RELATIVE POVERTY RESIDUAL TERM SIMULATION TECHNIQUES WAGES WEALTH The authors develop a microeconometric method to account for differences across distributions of household income. Going beyond the determination of earnings in labor markets, they also estimate statistical models for occupational choice and for conditional distributions of education, fertility, and nonlabor incomes. The authors import combinations of estimated parameters from these models to simulate counterfactual income distributions. This allows them to decompose differences between functionals of two income distributions (such as inequality or poverty measures) into shares because of differences in the structure of labor market returns (price effects), differences in the occupational structure, and differences in the underlying distribution of assets (endowment effects). The authors apply the method to the differences between the Brazilian income distribution and those of Mexico and the United States, and find that most of Brazil's excess income inequality is due to underlying inequalities in the distribution of two key endowments: access to education and to sources of nonlabor income, mainly pensions. 2013-06-28T13:14:07Z 2013-06-28T13:14:07Z 2002-04-30 http://documents.worldbank.org/curated/en/2002/04/1769436/beyond-oaxaca-blinder-accounting-differences-household-income-distributions-across-countries http://hdl.handle.net/10986/14287 English en_US Policy Research Working Paper;No.2828 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Brazil Mexico UNITED STATES |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
HOUSEHOLD INCOME LABOR MARKETS OCCUPATIONAL CHOICE INCOME DISTRIBUTION OCCUPATIONAL STRUCTURE ENDOWMENTS PENSIONS INCOME INEQUALITIES ABSOLUTE POVERTY ABSOLUTE POVERTY LINE COUNTERFACTUAL COUNTRY REGRESSIONS CROSS-COUNTRY DIFFERENCES DATA SET DATA SETS DECOMPOSITION ANALYSIS DEMOGRAPHIC MAKE-UP DESCRIPTIVE STATISTICS DIFFERENCES IN INCOME DISTRIBUTION FUNCTION DISTRIBUTION FUNCTIONS ECONOMETRIC MODELS EMPIRICAL APPLICATION EXCHANGE RATES EXOGENOUS VARIABLES EXPLANATORY POWER FUNCTIONAL FORM FUNCTIONAL FORMS GDP GDP PER CAPITA GINI COEFFICIENT HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SIZE HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME DATA INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME SOURCES INCOME STUDY INCOMES INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES LABOR FORCE LABOR MARKET LABOR MARKETS MEAN INCOME MEAN INCOMES MEDIAN INCOME NORMAL DISTRIBUTION PER CAPITA INCOME PER CAPITA INCOMES PERSONAL INCOME POLICY RESEARCH POVERTY GAP POVERTY INCIDENCE POVERTY INDICES POVERTY LEVELS POVERTY MEASURE POVERTY MEASURES PUBLIC TRANSFERS RELATIVE IMPORTANCE RELATIVE POVERTY RESIDUAL TERM SIMULATION TECHNIQUES WAGES WEALTH |
| spellingShingle |
HOUSEHOLD INCOME LABOR MARKETS OCCUPATIONAL CHOICE INCOME DISTRIBUTION OCCUPATIONAL STRUCTURE ENDOWMENTS PENSIONS INCOME INEQUALITIES ABSOLUTE POVERTY ABSOLUTE POVERTY LINE COUNTERFACTUAL COUNTRY REGRESSIONS CROSS-COUNTRY DIFFERENCES DATA SET DATA SETS DECOMPOSITION ANALYSIS DEMOGRAPHIC MAKE-UP DESCRIPTIVE STATISTICS DIFFERENCES IN INCOME DISTRIBUTION FUNCTION DISTRIBUTION FUNCTIONS ECONOMETRIC MODELS EMPIRICAL APPLICATION EXCHANGE RATES EXOGENOUS VARIABLES EXPLANATORY POWER FUNCTIONAL FORM FUNCTIONAL FORMS GDP GDP PER CAPITA GINI COEFFICIENT HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SIZE HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME DATA INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME SOURCES INCOME STUDY INCOMES INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES LABOR FORCE LABOR MARKET LABOR MARKETS MEAN INCOME MEAN INCOMES MEDIAN INCOME NORMAL DISTRIBUTION PER CAPITA INCOME PER CAPITA INCOMES PERSONAL INCOME POLICY RESEARCH POVERTY GAP POVERTY INCIDENCE POVERTY INDICES POVERTY LEVELS POVERTY MEASURE POVERTY MEASURES PUBLIC TRANSFERS RELATIVE IMPORTANCE RELATIVE POVERTY RESIDUAL TERM SIMULATION TECHNIQUES WAGES WEALTH Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries |
| geographic_facet |
Latin America & Caribbean Brazil Mexico UNITED STATES |
| relation |
Policy Research Working Paper;No.2828 |
| description |
The authors develop a microeconometric
method to account for differences across distributions of
household income. Going beyond the determination of earnings
in labor markets, they also estimate statistical models for
occupational choice and for conditional distributions of
education, fertility, and nonlabor incomes. The authors
import combinations of estimated parameters from these
models to simulate counterfactual income distributions. This
allows them to decompose differences between functionals of
two income distributions (such as inequality or poverty
measures) into shares because of differences in the
structure of labor market returns (price effects),
differences in the occupational structure, and differences
in the underlying distribution of assets (endowment
effects). The authors apply the method to the differences
between the Brazilian income distribution and those of
Mexico and the United States, and find that most of
Brazil's excess income inequality is due to underlying
inequalities in the distribution of two key endowments:
access to education and to sources of nonlabor income,
mainly pensions. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. |
| author_facet |
Bourguignon, Francois Ferreira, Francisco H.G. Leite, Phillippe G. |
| author_sort |
Bourguignon, Francois |
| title |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries |
| title_short |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries |
| title_full |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries |
| title_fullStr |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries |
| title_full_unstemmed |
Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries |
| title_sort |
beyond oaxaca-blinder: accounting for differences in household income distributions across countries |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/04/1769436/beyond-oaxaca-blinder-accounting-differences-household-income-distributions-across-countries http://hdl.handle.net/10986/14287 |
| _version_ |
1764429922749644800 |