Distributional change: Assessing the contribution of household income sources

Iryna Kyzyma; Alessio Fusco; Philippe Van Kerm

Distributional change: Assessing the contribution of household income sources

Iryna Kyzyma, Alessio Fusco, Philippe Van Kerm

Living Conditions

Research output: Working paper

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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.

Original language	English
Publisher	LISER
Number of pages	35
Publication status	Published - 1 Oct 2019

Publication series

Name	Working Papers
Publisher	LISER
No.	2019-13
ISSN (Electronic)	2716-7445

Keywords

copula
dependence structure
factor decomposition
income sources
poverty and inequality

LISER Collections

Les working papers du Liser

Access to Document

WP n°2019-13Final published version, 1.48 MB

2 Finished

IMeRSe: Investigating the Mechanisms of Reliance to Social Assistance
Fusco, A., Van Kerm, P., Tenikue, M., Dautel, V., Misangumukini, N. & Girardi, S.
Luxembourg Institute of Socio-Economic Research (LISER), Luxembourg National Research Fund (FNR)
1/09/16 → 31/08/20
Project: Research
SIMDECO: Tax-benefit systems, employment structures and cross-country differences in income inequality in Europe: a micro-simulation approach
Van Kerm, P., O’Donoghue, C., Sologon, D. & Liégeois, P.
16/12/13 → 15/12/16
Project: Research

2 Chapter
1 Commissioned report

Comprendre l’évolution des inégalités de revenu entre 1987 et 2010 au Luxembourg
Berger, F., Fusco, A. & Kyzyma, I., 2014, Cohésion Sociale et Territoriale au Luxembourg. Peter Lang, p. 53-67
Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review
Luxembourg : has inequality grown enough to matter ?
Fusco, A., Van Kerm, P., Alieva, A., Bellani, L., Robert, F., Guio, A-C., Kyzyma, I., Leduc, K., Liegeois, P., Pi Alperin, M. N., Reinstadler, A., Sierminska, E., Sologon, D., Thill, P. & Valentova, M., 2014, Changing Inequalities and Societal Impacts in Rich Countries: Thirty Countries Experiences. Oxford University Press, p. 437-458 22 p.
Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review
GINI Country Report: Growing Inequalities and their Impacts in Luxembourg
Fusco, A., Kerm, P. V., Alieva, A., Bellani, L., Robert, F. E., Guio, A-C., Kyzyma, I., Leduc, K., Liégeois, P., Alperin, M-N. P., Reinstadler, A., Sierminska, E., Sologon, D., Thill, P. & Valentova, M., 1 Apr 2013, Luxembourg: LISER. 135 p. (GINI Country Reports Luxembourg)
Research output: Book/Report › Commissioned report

Open Access

Cite this

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title = "Distributional change: Assessing the contribution of household income sources",

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. ",

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N2 - 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.

AB - 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.

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KW - poverty and inequality

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T3 - Working Papers

BT - Distributional change: Assessing the contribution of household income sources

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Distributional change: Assessing the contribution of household income sources

Abstract

Publication series

Keywords

LISER Collections

Access to Document

Projects

IMeRSe: Investigating the Mechanisms of Reliance to Social Assistance

SIMDECO: Tax-benefit systems, employment structures and cross-country differences in income inequality in Europe: a micro-simulation approach

Research output

Comprendre l’évolution des inégalités de revenu entre 1987 et 2010 au Luxembourg

Luxembourg : has inequality grown enough to matter ?

GINI Country Report: Growing Inequalities and their Impacts in Luxembourg

Cite this