Decomposition methods for analyzing inequality changes in Latin America 2002–2014

Ariza, John; Montes‐Rojas, Gabriel

doi:10.1007/s00181-018-1518-4

Cited by 3 publications

(2 citation statements)

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“…We use the Oaxaca-Blinder decomposition for the pooled sample to examine the mean labor income difference (D) between the group of older male workers and older female workers respectively (Ariza & Montes-Rojas, 2019;Duncan & Sandy, 2013;Fortin et al, 2011;Jann, 2008;Ñopo, 2008). Following the order of presentation of how D is accounted for in Sharma (2017), we identify three components:…”

Section: Estimation Resultsmentioning

confidence: 99%

Gender Inequity: Older Workers and the Gender Labor Income Gap in Peru

Saco

Gil

Campos

2021

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Using annual household surveys from 2004 to 2019, we examine the existence of a gender labor income gap among older persons in Peru. Two labor income models are estimated: Model 1 uses a basic set of demographic, socioeconomic, and personal characteristics as regressors (also called endowments); Model 2 uses the basic set plus additional personal characteristics. The Misner‐type relationship holds with positive returns for education and experience, and the anticipated association to the endowments. The Oaxaca‐Blinder decomposition yields an explained labor income gender gap of 44.4% (Model 1) and 51.5% (Model 2), i.e., controlling for endowments, approximately one half of the labor income difference remains unexplained and can be attributed to discrimination and labor segregation. In light of these results, we estimate Model 3 with two additional variables (head of household and beneficiary of intergenerational private transfer) which attempt to capture gendered stereotypes. With these two variables which provide information on gender discrimination the explained labor income gap for Model 3 is 71.1%—an increase of 19.6%. The unexplained component of the difference in labor income amounts to 28.8% that we attribute to unobserved variables that operate as post‐labor market elements in patriarchal societies. Results show that gender inequity during a woman’s life‐span manifests acutely among older women, which raises important implications for policy interventions.

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Section: Estimation Resultsmentioning

confidence: 99%

Gender Inequity: Older Workers and the Gender Labor Income Gap in Peru

Saco

Gil

Campos

2021

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“…And when positively associated with the conditional distribution of earnings, relatively richer individuals get more from education, hence increased levels of education are associated with a higher mean wage and more inequality. Empirical contributions on this line of research are based on quantile regression (QR), and include Buchinsky (1994Buchinsky ( , 2001, Martins and Pereira (2004), Staneva et al (2010), Ariza and Montes-Rojas (2019), among others.…”

Section: Introductionmentioning

confidence: 99%

A decomposition method to evaluate the `paradox of progress' with evidence for Argentina

Alejo¹,

Gasparini²,

Montes‐Rojas³

et al. 2021

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The 'paradox of progress' is an empirical regularity that associates more education with larger income inequality. Two driving and competing factors behind this phenomenon are the convexity of the 'Mincer equation' (that links wages and education) and the heterogeneity in its returns, as captured by quantile regressions. We propose a joint least-squares and quantile regression statistical framework to derive a decomposition in order to evaluate the relative contribution of each explanation. The estimators are based on the 'functional derivative' approach. We apply the proposed decomposition strategy to the case of Argentina 1992 to 2015.

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