Rethinking inequality decomposition, with evidence from rural China

Jonathan Morduch, Terry Sicular

Research output: Contribution to journalArticle

Abstract

We examine inequality decompositions by income source and describe a general, regression-based approach for decomposing inequality. The approach provides an efficient and flexible way to quantify the roles of variables like education and age in a multivariate context. We illustrate the method using survey data from China. The empirical results demonstrate how sharply different conclusions can emerge for different decomposition rules. We explain how these differences reflect the treatment of equally-distributed sources of income, and we discuss implications for how results from inequality decomposition are interpreted.

Original languageEnglish (US)
Pages (from-to)93-106
Number of pages14
JournalEconomic Journal
Volume112
Issue number476
DOIs
StatePublished - 2002

Fingerprint

Income
Inequality decomposition
Rural China
China
Education
Survey data
Decomposition
Empirical results

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Rethinking inequality decomposition, with evidence from rural China. / Morduch, Jonathan; Sicular, Terry.

In: Economic Journal, Vol. 112, No. 476, 2002, p. 93-106.

Research output: Contribution to journalArticle

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