Publications

01 Oct 19

Distributional change: Assessing the contribution of household income sources.

Authors: KYZYMA Iryna, FUSCO Alessio, VAN KERM Philippe.

Abstract: We develop a decomposition of distributional change by factor components to quantify how changes in the association between sources of income and changes in their marginal distributions contribute to the change in the distribution of household incomes over time. The two components are further broken down to isolate the contribution of specific income sources. 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.

Reference: KYZYMA Iryna, FUSCO Alessio, VAN KERM Philippe. Distributional change: Assessing the contribution of household income sources. LISER, 2019, Working Papers n°2019-13, 40 p.

Keywords:
copula,
dependence structure,
factor decomposition,
income sources,
poverty and inequality

JEL: C14, D31, D33.