Decomposing Income Inequality in Tunisia and Egypt

This multi-country study consists of decomposing income inequality in Tunisia and Egypt using household surveys data sets for the two countries that are available through the ERF data portal. The decomposition approach consists of building a welfare generation model for each country as a function of demographics and labor characteristics. This will allow tackling differences in both returns in employment and demographic characteristics. The approach to addressing these themes consists of simulating counterfactual distributions by changing how markets and households behave, one aspect at a time, and by observing the effect of each change on welfare distribution, while holding all other aspects constant.