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This paper promotes the application of a path-independent decompositionscheme. Besides presenting some theoretical arguments supporting thisdecomposition scheme, this study also illustrates the difference between thepath-independent decomposition scheme and a popular sequential decompositionwith an empirical application of the two schemes. The empirical application isabout identifying a directly unobservable phenomenon, i.e. the changing socialgap between people from different educational strata, through its effect onmarriages and cohabitations. It exploits census data from four waves between1977 and 2011 about the American, French, Hungarian, Portuguese, and Romaniansocieties. For some societies and periods, the outcome of the decomposition isfound to be highly sensitive to the choice of the decomposition scheme. Theseexamples illustrate the point that a careful selection of the decompositionscheme is crucial for adequately documenting the dynamics of unobservablefactors.

Decomposition scheme matters more than you may think