Inequality in selected SEE countries: A decomposition analysis of trends and determinants

Type Working Paper - Global Development Network project "Inequality and Fiscal Policy in Transition Countries"
Title Inequality in selected SEE countries: A decomposition analysis of trends and determinants
Author(s)
Publication (Day/Month/Year) 2009
URL http://gdnet09.pbworks.com/f/Sebastian Leitner and Robert Stehrer_Paper_B.4.pdf
Abstract
In this paper we provide a comparative analysis of inequality in household consumption per capita in four Western Balkan countries, i.e. Albania, Bosnia & Herzegovina, Bulgaria, and Serbia. The analysis is based on a comparable dataset based on the World Bank’s Living Standards Measurement Study (LSMS) which provide data for at least two years for each of the countries. We apply standard decomposition methods and inequality decomposition based on the Shapley approach. The results suggest that three groups of variables are particularly important for explaining patterns of inequality; these are age and sex, employment status and education.

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