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Distributional Change: Assessing the Contribution of Household Income Sources

2022

Abstract: We develop a decomposition of changes in household income distributions by factor components to quantify the contribution of changes over time in the association between sources of income and changes in their (marginal) distributions. The two components are broken down to isolate the contribution of specific income sources. An 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.

Type: Journal article
Theme(s): Income inequality: measures, trends and drivers
JEL Classification: C14, D31, D33
10.1111/obes.12462
RePEc:bla:obuest:v:84:y:2022:i:1:p:158-184

Reference

Kyzyma, I., Fusco, A. & Van Kerm, P. (2022), 'Distributional Change: Assessing the Contribution of Household Income Sources', Oxford Bulletin of Economics and Statistics, 84(1), 158-184.

@ARTICLE{pvk-631,
	Author = {Kyzyma, Iryna and Fusco, Alessio and Van Kerm, Philippe},
	Title = {Distributional Change: {A}ssessing the Contribution of Household Income Sources},
	Journal = {Oxford Bulletin of Economics and Statistics},
	Volume = {84},
	Number = {1},
	Pages = {158-184},
	Year = {2022}
}

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Kyzyma, I., Fusco, A. & Van Kerm, P. (2019), 'Distributional Change: Assessing the Contribution of Household Income Sources', LISER Working Paper 2019-13, Luxembourg Institute of Socio-Economic Research, Esch/Alzette, Luxembourg.    

Presentation(s) of this work (PVK only)

Trends in the distribution of income: The role of changes in family income composition. 2018 Conference of the International Association for Applied Econometrics (IAAE), Montreal, 2018.

Trends in the distribution of household incomes: the role of changes in the dependence of income sources. Seminar, University of Antwerp, Antwerp, 2018.

Dataset(s) used in the paper

Other papers using the same datasets...

Fusco, A. & Van Kerm, P. (2026), 'Poverty trends in Luxembourg 1985- 2023 — A race between the ‘middle’ and the ‘bottom’', LISER Policy Brief 2026-01, Luxembourg Institute of Socio-Economic Research.    

Hildebrand, V.A., Pi Alperin, M.N. & Van Kerm, P. (2017), 'Measuring and accounting for the deprivation gap of Portuguese immigrants in Luxembourg', Review of Income and Wealth, 63(2), 288-309.    

Brosius, J. & Van Kerm, P. (2014), 'Les inégalités de salaire', in E. Marlier, J. Brosius, V. Dautel, A. Decoville, F. Durand, P. Gerber & A.-C. Guio, Cohésion sociale et territoriale au Luxembourg, Regards croisés, Peter Lang, Brussels.    

Bia, M. & Van Kerm, P. (2014), 'Space-filling location selection', Stata Journal, 14(3), 605-622.    

Van Kerm, P. (2013), 'Generalized measures of wage differentials', Empirical Economics, 45(1), 465-482.    

Fusco, A. & Van Kerm, P. (2008), 'La progression du niveau de vie entre 2003 et 2006', Vivre au Luxembourg -- Chroniques de l'enquête PSELL-3 48, CEPS/INSTEAD, Differdange, Luxembourg.    

Van Kerm, P. & Villeret, A. (2007), 'Difficile de joindre les deux bouts? La satisfaction des ménages luxembourgeois quant à leur situation financière', Vivre au Luxembourg -- Chroniques de l'enquête PSELL-3 36, CEPS/INSTEAD, Differdange, Luxembourg.    

Van Kerm, P. (2005), 'Qui se ressemble s'assemble?', Vivre au Luxembourg -- Chroniques de l'enquête PSELL-3 10, CEPS/INSTEAD, Differdange, Luxembourg.    


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All versions of this work together, as of 17 October 2026. Each source covers different material, so the figures differ and are not added up.

Other papers on the same theme(s)

Doorley, K., Gromadzki, J., Lewandowski, P., Tuda, D. & Van Kerm, P. (2026), 'Automation and income inequality in Europe', Industrial and Labour Relations Review.    

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Fusco, A., Sohst, R.R. & Van Kerm, P. (2021), 'Foreign-born households in the income distribution and their contribution to social indicators in European countries', in A.-C. Guio, E. Marlier & B. Nolan, Improving the understanding of poverty and social exclusion in Europe, Publications Office of the European Union, Luxembourg, Ch.5, pp.87-102.    

Nolan, B., Palomino, J.C., Van Kerm, P. & Morelli, S. (2020), 'The intergenerational transmission of wealth in rich countries', VoxEU 19 September 2020, Centre for Economic Policy Research, London, UK.    

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Nolan, B., Morelli, S. & Van Kerm, P. (2018), 'Wealth Inequality', in B. Nolan, Generating Prosperity for Working Families in Affluent Countries, Oxford University Press, Oxford, UK, Ch.12, pp.312-334.    

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