Applying the Decomposition of the Foster and Wolfson Bipolarization Index to Earnings Functions
Inequality, Taxation and Intergenerational Transmission
ISBN: 978-1-78756-458-9, eISBN: 978-1-78756-457-2
Publication date: 28 December 2018
Abstract
This chapter shows that the algorithm recently proposed to decompose the Foster and Wolfson bipolarization index by income sources (see Bárcena-Martin, Deutsch, & Silber, forthcoming) may be extended to break down wage bipolarization by its determinants. The chapter gives an empirical illustration comparing the determinants of wage bipolarization and inequality in various European countries in 2011, with a special focus on Portugal. In Portugal higher levels of education are the main source of bipolarization and inequality. Gender and working in the public sector are important determinants of bipolarization while age and having a temporary job are important determinants of inequality.
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Acknowledgements
Acknowledgments
Elena Bárcena-Martín gratefully acknowledges the financial support provided by the Spanish Ministry of Education through Grant ECO2015-63734-P (MINECO/FEDER). She also thanks the University of Málaga for its financial support. Both authors thank the referee and the editors of this volume for their helpful remarks.
Citation
Bárcena-Martin, E. and Silber, J. (2018), "Applying the Decomposition of the Foster and Wolfson Bipolarization Index to Earnings Functions", Bishop, J.A. and Rodríguez, J.G. (Ed.) Inequality, Taxation and Intergenerational Transmission (Research on Economic Inequality, Vol. 26), Emerald Publishing Limited, Leeds, pp. 63-88. https://doi.org/10.1108/S1049-258520180000026005
Publisher
:Emerald Publishing Limited
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