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Decomposing Welfare Inequality in Egypt and Tunisia: an Oaxaca-Blinder Based Approach

Author

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  • Yosr Abid

    (Technical and Practical Assistance to Development, Tunisia)

  • Cathal O'Donoghue
  • Denisa Sologon

Abstract

In order to understand the main drivers of welfare inequality in Egypt and Tunisia, the present paper presents an Oaxaca-Blinder decomposition approach used to decompose differences across distributions of household expenditures, based on counterfactual distributions in the two countries of analysis. Taking Tunisia as a reference country, we find that changes in the expenditures structure and demographics are inequality decreasing. Changes in the characteristics of the labor market has, however, no, or very limited, impact on inequality as captured by the Gini Index.

Suggested Citation

  • Yosr Abid & Cathal O'Donoghue & Denisa Sologon, 2016. "Decomposing Welfare Inequality in Egypt and Tunisia: an Oaxaca-Blinder Based Approach," Working Papers 1015, Economic Research Forum, revised Jun 2016.
    • Handle: RePEc:erg:wpaper:1015
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    References listed on IDEAS

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    Cited by:

    1. Christophe Muller, 2016. "Optimal transfers with distribution regressions: An application to Egypt at the dawn of the XXIst century," WIDER Working Paper Series 179, World Institute for Development Economic Research (UNU-WIDER).
    2. Christophe Muller, 2018. "Optimal Cash Transfers with Distribution Regressions: An Application to Egypt at the Dawn of the XXIst Century," Working Papers halshs-01684570, HAL.
    3. Christophe Muller, 2016. "Optimal transfers with distribution regressions: An application to Egypt at the dawn of the XXIst century," WIDER Working Paper Series wp-2016-179, World Institute for Development Economic Research (UNU-WIDER).
    4. Racha Ramadan & Vladimir Hlasny & Vito Intini, 2018. "Inter‐Group Expenditure Gaps In The Arab Region And Their Determinants: Application To Egypt, Jordan, Palestine And Tunisia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(s1), pages 145-188, October.

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