Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition Approach

The inequality in the households' living standards is commonly measured by either income or consumption. Different household's attributes may affect inequality in these living standards. This study aims to investigate the factors affecting income and consumption, quantifies their proportio...

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Main Authors: Mohsen Ayyash, Siok Kun Sek, Tareq Sadeq
Format: Article
Language:English
Published: Czech Statistical Office 2020-03-01
Series:Statistika: Statistics and Economy Journal
Subjects:
Online Access:https://www.czso.cz/documents/10180/125507867/32019720q1_70_ayyash.pdf/7db7807a-f493-4301-b8ed-a085c24c6c5e?version=1.0
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author Mohsen Ayyash
Siok Kun Sek
Tareq Sadeq
author_facet Mohsen Ayyash
Siok Kun Sek
Tareq Sadeq
author_sort Mohsen Ayyash
collection DOAJ
description The inequality in the households' living standards is commonly measured by either income or consumption. Different household's attributes may affect inequality in these living standards. This study aims to investigate the factors affecting income and consumption, quantifies their proportionate contributions to income and consumption inequalities, and compares them. The data are collected from the Palestinian Household Expenditure and Consumption Survey (PECS) in 2017. To cast light on this issue, the study applies a regression-based decomposition approach to income-generating function. The results suggest that household attributes better explain adjusted consumption inequality than adjusted income inequality, which should be a better measure of living standards. Moreover, the results indicate that the region, education, and employment status are the major factors of adjusted income and consumption inequalities, while the other factor's contributions have been minimal. For policy interventions, multidimensional policies should be formulated to reduce inequality in all dimensions for achieving an overall equal society.
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spelling doaj.art-a38ee2e4a8be4aa6a6d899e0fa2e36ea2022-12-21T21:18:41ZengCzech Statistical OfficeStatistika: Statistics and Economy Journal0322-788X1804-87652020-03-01100017086Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition ApproachMohsen Ayyash0Siok Kun Sek1Tareq Sadeq2Universiti Sains Malaysia, Penang, MalaysiaUniversiti Sains Malaysia, Penang, MalaysiaBirzeit University, Birzeit, PalestineThe inequality in the households' living standards is commonly measured by either income or consumption. Different household's attributes may affect inequality in these living standards. This study aims to investigate the factors affecting income and consumption, quantifies their proportionate contributions to income and consumption inequalities, and compares them. The data are collected from the Palestinian Household Expenditure and Consumption Survey (PECS) in 2017. To cast light on this issue, the study applies a regression-based decomposition approach to income-generating function. The results suggest that household attributes better explain adjusted consumption inequality than adjusted income inequality, which should be a better measure of living standards. Moreover, the results indicate that the region, education, and employment status are the major factors of adjusted income and consumption inequalities, while the other factor's contributions have been minimal. For policy interventions, multidimensional policies should be formulated to reduce inequality in all dimensions for achieving an overall equal society.https://www.czso.cz/documents/10180/125507867/32019720q1_70_ayyash.pdf/7db7807a-f493-4301-b8ed-a085c24c6c5e?version=1.0inequalityregression-based decompositionincomeconsumptionpalestine
spellingShingle Mohsen Ayyash
Siok Kun Sek
Tareq Sadeq
Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition Approach
Statistika: Statistics and Economy Journal
inequality
regression-based decomposition
income
consumption
palestine
title Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition Approach
title_full Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition Approach
title_fullStr Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition Approach
title_full_unstemmed Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition Approach
title_short Income and Consumption Inequalities in Palestine: a Regression-Based Decomposition Approach
title_sort income and consumption inequalities in palestine a regression based decomposition approach
topic inequality
regression-based decomposition
income
consumption
palestine
url https://www.czso.cz/documents/10180/125507867/32019720q1_70_ayyash.pdf/7db7807a-f493-4301-b8ed-a085c24c6c5e?version=1.0
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