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Semi†parametric Regression†based Decomposition Methods: Evidence from Regional Inequality in Tunisia

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  • Amal Jmaii
  • Damien Rousselière
  • Christophe Daniel

Abstract

This paper examines urban†rural welfare inequality in Tunisia. Founded on the recentred influence function and quantile regression based counterfactual decomposition, we dissect the gap between the two areas. Results of the present study suggest that the difference between rural poor households and urban poor households is due essentially to characteristic effects; while for wealthier households both characteristic and returns to these characteristic effects (for example, efficiency of educational system) are responsible for this gap. Additionally, the results demonstrate that this is an issue of value, and, more specifically, an economic development fairness conflict. It is suggested that policymakers should address a positive discrimination programme in favour of the marginalized region.

Suggested Citation

  • Amal Jmaii & Damien Rousselière & Christophe Daniel, 2017. "Semi†parametric Regression†based Decomposition Methods: Evidence from Regional Inequality in Tunisia," African Development Review, African Development Bank, vol. 29(4), pages 660-673, December.
  • Handle: RePEc:bla:afrdev:v:29:y:2017:i:4:p:660-673
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    File URL: https://doi.org/10.1111/1467-8268.12304
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