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...

The amp;apos'prediction approachamp;apos' proposed by Dearden, Machin and Reed (DMR) consists in (1) regressing the observed incomes of the child and parent families on separate sets of predetermined variables, and (2) regressing the childamp;apos's predicted income on that of the parents....

We examine the sensitivity of estimates and inequality indices to extreme values, in the sense of their robustness properties and of their statistical performance. We establish that these measures are very sensitive to the properties of the income distribution. Estimation and inference can be...

We establish a general relationship between the standard form of the individualistic social-welfare function and the ?reduced-form? version that is expressed in terms of inequality and mean income. This shows the relationship between the property of monotonicity and the slope of the...

Instead of Inequality analysis sometimes neglects the problem of allowing differences in peopleamp;apos's non-income characteristics in the comparison of income distribution, I would say, At the heart of any distributional analysis there is the problem of allowing for differences in...

We examine the way in which across-the-board additions to incomes are perceived to change inequality. Using a questionnaire we investigate whether subjective inequality rankings correspond to the principle of scale-independence of translation-independence, or to some generalised concept of...

We examine the specification and interpretation of the transfer principle in analysing income distributions. The early work by Pigou and Dalton on this topic left open the possibility of a variety of specifications and interpretation of the principle. The modern development of the theory since...