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

• Tác giả: Javier Alejo, Leonardo Gasparini, Gabriel Montes-Rojas, Walter Sosa-Escudero
• Ngôn ngữ: eng
• Ký hiệu phân loại: 278.2 Christianity in South America Christian church in South
• Thông tin xuất bản: 2021
• Bộ sưu tập: Báo, Tạp chí
• ID: 168327

Tóm tắt

Comment: 29 pages, 2 figures, 2 tablesThe `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.