Publications

05 Sep 19

Understanding Differences in Household Expenditure Inequality between India and Indonesia.

Authors: ARIP Muttaqien, O'DONOGHUE Cathal, SOLOGON Denisa.

Online First: 16/09/2019

Abstract:

Although they are neighboring Asian countries with many similarities, India and Indonesia have different levels of household expenditure inequality. During the end of 2000s, the Gini coefficient of Indonesia was 9.1 percentage points larger than the Gini coefficient of India. To understand the determinants of this difference, this study decomposes it into to the contribution of price effects, demographic effects, and labor market structure effects. Differences in expenditure structures (price effects) and demographic characteristics are found to be the greatest contributors to the inequality gap across the two countries. The difference in the education distribution of household heads also has a positive and significant impact on the inequality gap. Differences in the labor market structure, on the other hand, turn out to be less important.

Reference: ARIP Muttaqien, O'DONOGHUE Cathal, SOLOGON Denisa. Understanding Differences in Household Expenditure Inequality between India and Indonesia. Research on Economic Inequality, 2019, vol. 27, pp. 55-68.

Keywords:
expenditure distribution,
inequality,
micro-simulation,
decomposition

Project: Tax-benefit systems, employment structures and cross-country differences in income inequality in Europe: a micro-simulation approach

Linked publications
DECANCQ Koen, VAN KERM Philippe.
Emerald Publishing Limited, 2019, coll. Research on Economic Inequality vol. 27, 208 p.
ARIP Muttaqien, O'DONOGHUE Cathal, SOLOGON Denisa.
Asian-Pacific Economic Literature, 2019, vol. 33, n°2, pp. 44-61.
SOLOGON Denisa, ALMEIDA Vanda, VAN KERM Philippe
LISER, 2019, Working Papers n°2019-05, 52 p.