Decomposing welfare inequality in Egypt and Tunisia : an oaxaca-blinder based approach

Abstract EN

In order to understand the main drivers of welfare inequality in Egypt and Tunisia, the present paper presents an Oaxaca-Blinder decomposition approach used to decompose differences across distributions of household expenditures, based on counterfactual distributions in the two countries of analysis.

Taking Tunisia as a reference country, we find that changes in the expenditures structure and demographics are inequality decreasing.

Changes in the characteristics of the labor market has, however, no, or very limited, impact on inequality as captured by the Gini Index.