A statistic to test whether the distributions of two observable variables are similar is proposed, where two distributions are defined as similar if they are the same except for a change in location and/or scale. The test statistic for similarity that is proposed extends the Kolmogorov–Smirnov...

Counterfactual decompositions allow researchers to analyze changes in wage distributions by discriminating between the effect of changes in population characteristics and the effect of changes in returns to these characteristics. Counterfactual distributions are derived here by recovering the...