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Distributional Change: Assessing the Contribution of Household Income Sources *
Author(s) -
Kyzyma Iryna,
Fusco Alessio,
Van Kerm Philippe
Publication year - 2022
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12462
Subject(s) - economics , spouse , earnings , distribution (mathematics) , demographic economics , household income , income distribution , econometrics , labour economics , inequality , geography , mathematics , mathematical analysis , accounting , archaeology , sociology , anthropology
We develop a decomposition of changes in household income distributions by factor components to quantify the contribution of changes over time in the association between sources of income and changes in their (marginal) distributions. The two components are broken down to isolate the contribution of specific income sources. An application to the change in the distribution of household incomes in Luxembourg between 2004 and 2013 reveals contrasted results: increased association between spouse earnings, public transfers and taxes depressed the income share of poor households while changes in marginal distributions increased incomes in the upper half of the distribution.