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Ethnic Conflict and Economic Disparity: Serbians and Albanians in Kosovo

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Author Info
Sumon Kumar Bhaumik () (Brunel University)
Ira N. Gang () (Rutgers University)
Myeong-Su Yun () (Tulane University)

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Abstract

Using the Living Standards Measurement Study (LSMS) household survey from post-conflict Kosovo we investigate the comparative economic well-being of Serbs and Albanians. An Oaxaca decomposition shows Serb households are both better endowed with income generating characteristics, such as education, and receive higher returns to these characteristics than Albanian households. Despite these advantages, Serb households have lower living standards, on average, than Albanian households. Most of the difference in living standards between Serb and Albanian households is on account of unobserved non-economic factors. This has serious implications for the political economy of policymaking in post-conflict Kosovo.

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Publisher Info
Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200636.

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Length: 20 pages
Date of creation: 01 Dec 2006
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Handle: RePEc:rut:rutres:200636

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Related research
Keywords: poverty; ethnicity; transition; consumption;

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Find related papers by JEL classification:
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  2. Mckinley, Terry & Alarcon, Diana, 1995. "The prevalence of rural poverty in Mexico," World Development, Elsevier, vol. 23(9), pages 1575-1585, September. [Downloadable!] (restricted)
  3. Dimova, Ralitza & Gang, Ira N., 2004. "Self-Selection and Earnings During Volatile Transition," IZA Discussion Papers 1158, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, vol. 88(5), pages 1117-42, December. [Downloadable!] (restricted)
    Other versions:
  5. Frank A. Scott & John Garen & Mark Berger, 1995. "Do health insurance and pension costs reduce the job opportunities of older workers?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 48(4), pages 775-791, July.
  6. Moene, Karl Ove, 1992. "Poverty and Landownership," American Economic Review, American Economic Association, vol. 82(1), pages 52-64, March. [Downloadable!] (restricted)
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  7. Doiron, D.J. & Rddell, W.C., 1992. "The Impact of Unionization on Male-Female Earnings Differences in Canada," UBC Departmental Archives 92-30, UBC Department of Economics.
  8. Robert W. Fairlie, 2003. "An Extension of the Blinder-Oaxaca Decomposition Technique to Logit and Probit Models," Working Papers 873, Economic Growth Center, Yale University. [Downloadable!]
  9. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, vol. 32(4), pages 393-398, April. [Downloadable!] (restricted)
  10. Bhaumik, Sumon Kumar & Nugent, Jeffrey B, 1999. "Analysis of Food Demand in Peru: Implications for Food-Feed Competition," Review of Development Economics, Blackwell Publishing, vol. 3(3), pages 242-57, October. [Downloadable!] (restricted)
  11. Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December. [Downloadable!] (restricted)
  12. Yun, Myeong-Su, 2003. "Decomposing Differences in the First Moment," IZA Discussion Papers 877, Institute for the Study of Labor (IZA). [Downloadable!]
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  13. Maitra, Pushkar & Ray, Ranjan, 2003. "The effect of transfers on household expenditure patterns and poverty in South Africa," Journal of Development Economics, Elsevier, vol. 71(1), pages 23-49, June. [Downloadable!] (restricted)
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  14. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-66, December.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bhaumik, Sumon Kumar & Gang, Ira N. & Yun, Myeong-Su, 2008. "Gender and Ethnicity in Post-Conflict Kosovo," Working Papers RP2008/43, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Sumon Kumar Bhaumik & Manisha Chakrabarty, 2007. "Is Education the Panacea for Economic Deprivation of Muslims? Evidence from Wage Earners in India, 1987-2004," William Davidson Institute Working Papers Series wp858, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  3. Sumon Kumar Bhaumik & Ira N. Gang & Myeong-Su Yun, 2007. "Rationality as a Barrier to Peace: Micro-Evidence from Kosovo," IZA Discussion Papers 2682, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Epstein, Gil S. & Gang, Ira N., 2008. "Ethnicity, Assimilation and Harassment in the Labor Market," IZA Discussion Papers 3591, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Sumon Kumar Bhaumik & Ira N. Gang & Myeong-Su Yun, 2006. "A Note on Decomposing Differences in Poverty Incidence Using Regression Estimates: Algorithm and Example," Departmental Working Papers 200633, Rutgers University, Department of Economics. [Downloadable!]
    Other versions:
  6. Kristjan-Olari Leping & Ott Toomet, 2007. "Ethnic Wage Gap And Political Break-Ups: Estonia During Political And Economic Transition," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 53, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
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