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Table 3 Decomposition of earnings dispersion: absolute and relative contributions

From: Are changes in the dispersion of hours worked a cause of increased earnings inequality?

Year Country I y I w I h ρ RC w RC h RC ρ
1991 USA 0.175 0.114 0.045 0.017 0.649 0.256 0.095
   (0.004) (0.002) (0.002) (0.002)    
  UK 0.255 0.131 0.094 0.030 0.514 0.370 0.116
   (0.007) (0.004) (0.004) (0.005)    
  DE 0.174 0.118 0.055 0.000 0.680 0.319 0.001
   (0.004) (0.003) (0.002) (0.003)    
  FR 0.118 0.096 0.034 −0.013 0.818 0.292 −0.109
   (0.002) (0.001) (0.001) (0.001)    
1995 USA 0.225 0.165 0.039 0.021 0.734 0.174 0.092
   (0.004) (0.003) (0.001) (0.002)    
  UK 0.260 0.136 0.091 0.033 0.524 0.350 0.126
   (0.009) (0.005) (0.004) (0.005)    
  DE 0.147 0.103 0.060 −0.016 0.702 0.409 −0.111
   (0.004) (0.004) (0.002) (0.004)    
  FR 0.133 0.101 0.040 −0.008 0.759 0.300 −0.060
   (0.002) (0.001) (0.001) (0.001)    
2000 USA 0.218 0.161 0.034 0.022 0.742 0.156 0.102
   (0.004) (0.003) (0.001) (0.002)    
  UK 0.226 0.125 0.077 0.023 0.554 0.343 0.103
   (0.007) (0.005) (0.004) (0.004)    
  DE 0.185 0.101 0.068 0.017 0.543 0.367 0.090
   (0.004) (0.002) (0.002) (0.002)    
  FR 0.131 0.093 0.040 −0.001 0.707 0.302 −0.009
   (0.002) (0.001) (0.001) (0.001)    
2007 USA 0.223 0.173 0.033 0.017 0.778 0.147 0.075
   (0.004) (0.004) (0.001) (0.002)    
  UK 0.227 0.134 0.064 0.029 0.592 0.282 0.126
   (0.009) (0.006) (0.003) (0.004)    
  DE 0.230 0.123 0.082 0.025 0.535 0.358 0.107
   (0.006) (0.003) (0.003) (0.003)    
  FR 0.119 0.079 0.041 −0.001 0.664 0.346 −0.010
   (0.003) (0.002) (0.002) (0.003)    
2012 USA 0.247 0.183 0.037 0.027 0.741 0.151 0.109
   (0.005) (0.004) (0.001) (0.002)    
  UK 0.248 0.147 0.073 0.028 0.593 0.294 0.112
   (0.004) (0.003) (0.001) (0.002)    
  DE 0.229 0.122 0.077 0.030 0.534 0.337 0.129
   (0.006) (0.004) (0.003) (0.003)    
  FR 0.137 0.086 0.042 0.010 0.626 0.303 0.071
   (0.004) (0.002) (0.001) (0.002)    
  1. Note: Inequality in earnings, wages, and hours is measured by the MLD and denoted by I y ,I w , and I h , respectively. ρ denotes the correlation term, while RC i is the relative distribution of wages, hours, and the correlation term