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Decomposing Spatial Inequality in Sri Lanka: A Quantile Regression Approach

In: Poverty Reduction Policies and Practices in Developing Asia

Author

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  • Thusitha Kumara

    (Kobe University)

Abstract

This paper uses the Blinder[aut]Blinder, A. and Oaxaca[aut]Oaxaca, R. decomposition method and its recent expansion (Machado[aut]Machado, J. and Mata[aut]Mata J. ) to examine whether well-being gaps between urban (richer regions) and rural (poorer regions) areas are the result of (i) regional/spatial differences in household characteristics or (ii) differences in location-specific returns to these characteristics. The data used in this study are from the Household Income and Expenditure Surveys for 2006/2007 and 2009/2010. The analysis suggests that the existence of barriers, such as remoteness and poor access to markets, that prevents lagging regions from being absorbed into the modern sector or growing region plays a larger role in perpetuating spatial inequality, especially for the poor, than disparities in household characteristics (endowments) between regions and sectors.

Suggested Citation

  • Thusitha Kumara, 2015. "Decomposing Spatial Inequality in Sri Lanka: A Quantile Regression Approach," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Almas Heshmati & Esfandiar Maasoumi & Guanghua Wan (ed.), Poverty Reduction Policies and Practices in Developing Asia, edition 127, chapter 0, pages 165-186, Springer.
    • Handle: RePEc:spr:esichp:978-981-287-420-7_9
    DOI: 10.1007/978-981-287-420-7_9
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    Cited by:

    1. Prathi Seneviratne, 2017. "Explaining Changes in Sri Lanka’s Wage Distribution, 1992-2014: A Quantile Regression Analysis," Working Papers 2017-01, Carleton College, Department of Economics.

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