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Using Dagum's Gini decomposition to assess households' asset-based gap in the regions of Burkina Faso

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  • Yawo A. Noglo

    (Paris West Univ. Nanterre La Defense, France/INSEEC MSc & MBA, Paris/CAP-Afriques, UQAM, Canada)

  • Namponndi Kader Ouedraogo

    (LADYSS, Paris West University Nanterre La Defense, France)

Abstract

We consider the multidimensional wealth index constructed with a tetrachoric principal component analysis (PCA) to assess regional inequality in Burkina Faso using Dagum's Gini decomposition. The data used come from the 2014 Burkina Faso Malaria Indicator Survey (MIS). The results suggest that there are greater gaps (more heterogeneity) and less inequality (more homogeneity) in living standards between and within groups respectively. The decomposition of the total gross intergroup inequality shows that the most pronounced wealth gaps are between households in the urban Centre and those in the following rural regions: Sahel, Est, and Boucle de Mouhoun. These regional findings reflect particular conditions in these localities. The difficult living conditions inherent to these rural regions require effective policies to enable them to catch up with the urban Centre. However, the breakdown of the intragroup disparity showing evidence that the urban Centre and rural Est are more uneven should not be neglected in the political agenda.

Suggested Citation

  • Yawo A. Noglo & Namponndi Kader Ouedraogo, 2020. "Using Dagum's Gini decomposition to assess households' asset-based gap in the regions of Burkina Faso," Economics Bulletin, AccessEcon, vol. 40(3), pages 2241-2253.
    • Handle: RePEc:ebl:ecbull:eb-20-00146
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    More about this item

    Keywords

    Dagum's Gini; regional inequality; composite wealth index; Burkina Faso;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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