Decomposing Monetary Inequality in the Arab Region

Abstract

The main objective of this paper is to perform a decomposition analysis of the inequality level by socioeconomic groups and geopolitical regions of each country to better our understanding of their contribution to overall inequality. This will fill an important gap in knowledge of inequality patterns in the Arab region, by drawing a rough picture of monetary inequality. Our results show that differences in mean income across groups are much larger in Tunisia, Morocco and especially Yemen and account for a much larger proportion of overall inequality.

Keywords:

• Inequality
• groups
• Arab region