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Semi‐parametric Regression‐based Decomposition Methods: Evidence from Regional Inequality in Tunisia
Author(s) -
Jmaii Amal,
Rousselière Damien,
Daniel Christophe
Publication year - 2017
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/1467-8268.12304
Subject(s) - counterfactual thinking , quantile regression , inequality , economics , welfare , regression , econometrics , quantile , decomposition , value (mathematics) , regression analysis , demographic economics , development economics , mathematics , statistics , market economy , mathematical analysis , ecology , philosophy , epistemology , biology
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.