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Ethnic Conflict and Economic Disparity: Serbians and Albanians in Kosovo

Author

Listed:
  • Sumon Kumar Bhaumik

    (Brunel University)

  • Ira N. Gang

    (Rutgers University)

  • Myeong-Su Yun

    (Tulane University)

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.

Suggested Citation

  • Sumon Kumar Bhaumik & Ira N. Gang & Myeong-Su Yun, 2006. "Ethnic Conflict and Economic Disparity: Serbians and Albanians in Kosovo," Departmental Working Papers 200636, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:200636
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    More about this item

    Keywords

    poverty; ethnicity; transition; consumption;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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