Regression-based analysis of the factors contributing to consumption expenditure inequality in Myanmar: 2004/05-2009/10
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PhD Seminar (Econ)
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Nationwide consumption expenditure inequality in Myanmar, as measured by the Gini coefficient, declined from 0.256 to 0.220 between 2004/05 and 2009/10. This research investigates the factors contributing to the level of expenditure inequality and its change over time using panel household survey data from the Integrated Household Living Condition Assessment surveys for those years. The regression-based inequality decomposition methodology of Fields (2003) is used. This study identifies and quantifies the relative contribution of variables relating to the household, community, state and regional level factors in explaining consumption inequality. Location and regional effects, occupation, and levels of education of household members are keys to explaining both the level and changes of inequality. Regional specific variables are the main contributors to the narrowing of expenditure inequality and they explain about 33 per cent of the changes in the Gini coefficient. The share of household members with different types of occupation contribute about 23 per cent of the reduction in expenditure inequality. The analysis also indicates that the favourable change in the level of education of working-age adults has an impact on reducing inequality about 9 per cent.
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