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The drivers of labour income inequality: an analysis based on Bayesian Model Averaging/

Koske, I.

The drivers of labour income inequality: an analysis based on Bayesian Model Averaging/ created by Isabell Koske and I. Wanner - Applied economics letters Volume 20, number 2 .

Many Organisation for Economic Co-operation and Development (OECD) countries have seen income inequality rising over the past decade, which has led to a renewed interest among researchers and policy makers in understanding the causes of income inequality. To shed light on this issue, this article investigates the determinants of labour income inequality for a sample of 22 OECD countries. As model uncertainty is likely to be a major issue in such an underpinning, the empirical analysis relies on a Bayesian Model Averaging (BMA) technique. The results suggest that in particular labour, education and tax policies have an important influence on the distribution of labour income.

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Labour income--Education policy--Inequality

HB1.A666 APP