Shapley-Value Decompositions of Changes in Wage Distributions: A Note

This note shows how the Shapley-value can be applied to the regression-based methods that are often used to decompose changes in wage distributions. The method remedies the path-dependency exhibited by existing approaches that compute the contributions due to (i) changes in sample observable characteristics, (ii) changes in the return of characteristics, (iii) changes in the distribution of unobservable characteristics.

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Year of publication:	2008
Authors:	Devicienti, Francesco
Institutions:	Collegio Carlo Alberto, Università degli Studi di Torino
Subject:	regression-based decomposition methods \| wage distribution \| Shapley-value

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Extent:	application/pdf
Series:	LABORatorio R. Revelli Working Papers Series.
Type of publication:	Book / Working Paper
Notes:	Number 80
Classification:	J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	RePEc - Research Papers in Economics

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