Determinants of Inequality in Selected SEE Countries: Results from Shapley Value Decompositions
AbstractIn this paper we provide a comparative analysis of inequality in household consumption per capita in four South-Eastern European countries, Albania, Bosnia & Herzegovina, Bulgaria, and Serbia. The analysis is based on a largely consistent dataset derived from the World Bank’s Living Standards Measurement Study (LSMS) providing data for at least two years for each of these countries and a comparable set of variables. We apply inequality decomposition methods based on regression analysis and variants of the Shapley value approach. We also present results from related methods like a decomposition of the explained variance using different approaches for comparisons. The results suggest that three groups of variables are particularly important for explaining patterns of inequality; these are socio-demographic variables, employment status and education. Regional aspects and nationality or ethnicity plays a less important role though there are some country differences.
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Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series The wiiw Balkan Observatory Working Papers with number 084.
Date of creation: Nov 2009
Date of revision:
Publication status: Published as The wiiw Balkan Observatory Working Paper, November 2009
Find related papers by JEL classification:
- C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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