We apply a variant of the microeconometric decomposition methodology proposed in Bourguignon et al. (1998) to assess the relevance of various factors that affected inequality in the period 1986-1998 in the Greater Buenos Aires area. The results of the paper suggest that the small change in...

This paper has two main goals. The first is to complement the Argentine mean income series with inequality estimates in order to obtain aggregate welfare series. Average income figures are estimated from National Accounts while income inequality indices are calculated from the Permanent...

It is well known that most of the standard speci¯cation tests are not valid when the alternative hypothesis is misspeci¯ed. This is particularly true in the error component model, when one tests for either random e®ects or serial correlation without taking account of the presence of the other...

The 'paradox of progress' is an empirical regularity that associates more education with larger income inequality. Two driving and competing factors behind this phenomenon are the convexity of the 'Mincer equation' (that links wages and education) and the heterogeneity in its returns, as...