We show how classic source-decomposition and subgroup-decomposition methods can be reconciled with regression methodology used in the recent literature. We also highlight some pitfalls that arise from uncritical use of the regression approach. The LIS database is used to compare the approaches...

This paper suggests overcoming some limitations of traditional inequalitydecomposition methods by developing a combination of Burtless (1999) and DiNardoet al. (1996), two different microsimulation methods for decomposing inequality. Byusing this combination it is possible to take into...

The early 1990s saw the rapid introduction of policies that were to reform the centrally planned economies in CEE and FSU. These policies were expected to lead to improvements in welfare. Studies on the transition projected initial falls in inequality and increases in poverty, which are...

This paper investigates possible explanations for the increases in inequality observed in Brazil during the 1980s. While the static decompositions of inequality by household characteristics reveal that education and race of the household head, as well as geographic location, can account for a...

Using a newly available comprehensive micro-data set we examine changes in the shape of the Brazilian income distribution during the quot;lost decadequot; of the 1980s. We adopt alternative parametric and non-parametric approaches to modelling the distribution. We show that inequality changed...

This paper proposes a model of wealth distribution dynamics with a capital market imperfection and a production function where public capital is complementary to private capital. A unique invariant steady-state distribution is derived, with three social classes: subsistence workers, 'government...