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Citation Information

Type Report
Title Determinants of inequality in selected SEE countries: Results from Shapley value decompositions
Publication (Day/Month/Year) 2009
Publisher Vienna Institute for International Economic Studies (wiiw)
City Vienna
Country/State Austria
URL http://www.wiiw.ac.at/balkan/files/wiiw_GDN_SEE_LeitnerStehrer09.pdf
In this paper we provide a comparative analysis of inequality in household consumption percapita 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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