Income inequality reflects resource allocations, and has important implications for public policy and institutional design. This paper investigates the factorsdetermining inequality. This is especially relevant in Chile where income distribution has not improved in the past decades. We...

Published by Asociación de Economistas Agrarios de Chile

We propose an empirical likelihood-based method of inference for comparing inequality between two populations. A series of Monte Carlo experiments are used to assess our method’s finite sample performance. We illustrate our approach using some Canadian household income data.