This paper proposes an extension of the Blinder-Oaxaca decomposition from two to a continuum of comparison groups. The proposed decomposition is then estimated for the case of racial wage differences in urban Peru, exploiting a novel data set that allows the capturing of mestizaje (racial mixtures)

This study aimed to identify the major factors underlying the large discrepancy in poverty levels between two Brazilian racial groups: whites and Afro-Brazilians. We performed an Oaxaca-Blinder-type decomposition for nonlinear regressions in order to quantify the extent to which differences in...

Relative employment conditions have changed across the public and private sectors in Britain over the last decade with the former becoming a more attractive earnings option. Using new linked employee-employer data for Britain in 2004, this paper shows that, on average, full-time male public...

We address the bias from using potential vs. actual experience in earnings models. Statistical tests reject the classical errors-in-variable framework. The nature of the measurement error is best viewed as a model misspecification problem. We correct for this by modeling actual experience as a...

This paper joins discussions on normalized regression and decomposition equations in devising a simple and general algorithm for obtaining the normalized regression and applying it to the Oaxaca decomposition. This resolves the invariance problem in the detailed Oaxaca decomposition. An...

Using a rich and comparable micro-data set, we analyse international differences in gender pay gaps in the private sector for a sample of five European economies: Belgium, Denmark, Ireland, Italy and Spain. Using different methods, we examine how wage structure, differences in the distribution...

This paper focuses on the importance data issues to the analysis of growth, poverty and economic inequality. We introduce a number of major databases frequently used in applied research on growth, poverty and global and international inequality. A discussion of data quality, data consistency,...

This paper is a review of recent developments of parametric and non-parametric approaches to decompose inequality by subgroups, income sources, causal factors and other unit characteristics. Different methods of decomposing changes in poverty into growth, redistribution, poverty standard and...

This paper develops methods for decomposing changes in the income distribution using subgroup decompositions of the income density function. Overall changes are related to changes in subgroup shares and changes in subgroup densities, where the latter are broken down further using elementary...

A particular shortcoming of panel surveys is potential bias arising from selective attrition. Based on data from the German Socio-Economic Panel Study (SOEP) we analyze potential artifacts (level, structure, inequality of income) by comparing results from two independently drawn panel...