This article proposes the application of regression trees for analysing income polarization. Using an approach to polarization based on the analysis of variance, we show that regression trees can uncover groups of homogeneous income receivers in a data-driven way. The regression tree can deal with nonlinear relationships between income and the characteristics of income receivers, and it can detect which characteristics and their interactions actually play a role in explaining income polarization. For these features, the regression tree is a flexible statistical tool to explore whether income receivers concentrate around local poles. An application to Italian individual income data shows an interesting partition of income receivers.

ON MEASURING INCOME POLARIZATION: AN APPROACH BASED ON REGRESSION TREES

MUSSINI, Mauro
2016-01-01

Abstract

This article proposes the application of regression trees for analysing income polarization. Using an approach to polarization based on the analysis of variance, we show that regression trees can uncover groups of homogeneous income receivers in a data-driven way. The regression tree can deal with nonlinear relationships between income and the characteristics of income receivers, and it can detect which characteristics and their interactions actually play a role in explaining income polarization. For these features, the regression tree is a flexible statistical tool to explore whether income receivers concentrate around local poles. An application to Italian individual income data shows an interesting partition of income receivers.
2016
regression trees
polarization
ANOVA
File in questo prodotto:
File Dimensione Formato  
ON MEASURING.pdf

accesso aperto

Descrizione: Articolo principale
Tipologia: Altro materiale allegato
Licenza: Creative commons
Dimensione 746.66 kB
Formato Adobe PDF
746.66 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/946581
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact