Exploring the relative marginal effects of household expenditure components on inequality in Chad using decomposition techniques

Bibliographic Data

ID6005807
AuthorsThemoi Demsou (0000-0001-6507-4930, University of N'Djamena), Paul Ningaye (Université de Dschang)
Year2025
Volume52
Issue11
Pages1539-1555
Publication date2025-10-14
Open AccessYes
TypeARTICLE
VenueInternational Journal of Social Economics (JOURNAL)
Journal identifiersISSN: 0306-8293 • E-ISSN: 1758-6712
PublisherEmerald (PUBLISHER)
DOI10.1108/ijse-07-2024-0537
OpenAlexW4406956472
LanguageEN
References cited39

Purpose Improving household consumption and reducing inequality are among the goals of developing countries. Therefore, the objective of this study is to investigate the relative marginal effects of components of household expenditure on total inequality. Design/methodology/approach We use the Lerman and Yitzhaki method, which allows us to determine the impact of marginal changes on inequality. The data used are from consumption surveys of 6,695 households in 2003, 9,259 households in 2011 and 7,493 households in 2018. Findings We observed that spending inequality widened to 0.410 in 2003, 0.420 in 2011 and 0.411 in 2018. Food expenditure during the three periods accounted for most of the variance in total consumption expenditure. The largest impact of a marginal change in spending components on overall inequality was due to transport, communication, recreation and culture, education and miscellaneous goods and services (positive effect) and alcohol and tobacco and expenditure on housing (negative effect). Originality/value This study is the first to decompose Chad’s Gini coefficient into its components, taking into account their relative marginal effects on total inequality. Income inequality, calculated by the World Bank from the Survey of Budget Consumption in Sub-Saharan Africa, does not reveal the effects and policies specific to its components. This study could fill this gap in the literature on income inequality. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2024-0537

Decomposition · Development economics · Econometrics · Economics · Inequality · Labour economics · Public economics · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Income, Poverty, and Inequality · Mathematics · Ecology

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