1. DECOMPOSITION OF THE CHANGING INCOME INEQUALITY OF TAIWAN'S HOUSEHOLDS.
- Author
-
Chien-Liang Chen
- Subjects
MATHEMATICAL decomposition ,HOUSEHOLDS ,INCOME inequality ,EQUALITY ,ECONOMIC research - Abstract
This paper analyzes the deteriorating income inequality of Taiwan's house- holds over the past three decades through estimates of unconditional distribution and counterfactual decomposition. It is found that changes in the distribution of household characteristics and the corresponding coefficients significantly affect income distribution with prevalent heterogeneities across the conditional quantiles. Aging of the household heads is the main reason to explain the worsening inequality, in addition to changes of the head's schooling and gender, household size, existence of spouse, and earner numbers. Focusing on the changing trends of the distributional pattern of income, this paper sheds new light on the decomposition of Taiwan's income distribution that are different from those presented in the existing studies. [ABSTRACT FROM AUTHOR]
- Published
- 2014